Annual Report Annual Report

DEPARTMENT OF ROADS AND TRANSPORT

GAUTENG PROVINCE ROADS AND TRANSPORT REPUBLIC OF SOUTH AFRICA ANNUAL REPORT ANNUAL REPORT

DEPARTMENT OF ROADS AND TRANSPORT ANNUAL REPORT 2019 - 2020

2019 - 2020 Growing Gauteng Together GaUTEnG pRovincE Roads and TRanspoRT REPUBLIC OF SOUTH AFRICA

VOTE 9 ANNUAL REPORT 2019 - 2020 FINANCIAL YEAR

PB GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 1 2 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 3 2 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 3 TABLE OF CONTENTS

1. DEPARTMENT GENERAL INFORMATION 6 2. ABBREVIATIONS AND ACRONYMS 8

PART A | GENERAL INFORMATION

3. FOREWORD BY THE MEMBER OF EXECUTIVE COUNCIL (MEC) 12 4. REPORT OF THE ACCOUNTING OFFICER 14 5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT 20 6. STRATEGIC OVERVIEW 21 6.1. Vision 21 6.2. Mission 21 6.3. Values 21 7. LEGISLATIVE AND OTHER MANDATES 22 8. ORGANISATIONAL STRUCTURE 23 9. ENTITIES REPORTING TO THE MEC 24

PART B | PERFORMANCE INFORMATION

1. AUDITOR GENERAL REPORT : PREDETERMINED OBJECTIVES 29 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE 30 2.1. Service Delivery Environment 30 2.2. Service Delivery Improvement Plan (SDIP) 33 2.3. Organisational Environment 34 2.4. Key policy developments and legislative changes. 36 3. STRATEGIC OUTCOME ORIENTED GOALS 37 4. PERFORMANCE INFORMATION BY PROGRAMME 39 4.1. Programme 1: Administration 39 4.2. Programme 2: Transport Infrastructure 51 4.3. Programme 3: Transport Operations 65 4.4. Programme 4: Transport Regulation 70 5. . TRANSFER PAYMENTS 75 5.1. Transfer payments to public entities 75 6. CONDITIONAL GRANTS 75 6.1. Conditional grants and earmarked funds received 75 7. CAPITAL INVESTMENT 77 7.1. Capital investment, maintenance and asset management plan 77

PLAY YOUR PART STOP THE SPREAD

4 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 5 TABLE OF CONTENTS

PART C | GOVERNANCE REPORT

1. INTRODUCTION 81 2. RISK MANAGEMENT 81 3. FRAUD AND CORRUPTION 82 4. MINIMISING CONFLICTS OF INTEREST 82 5. CODE OF CONDUCT 83 6. HEALTH, SAFETY AND ENVIRONMENTAL ISSUES 83 7. PORTFOLIO COMMITTEES 83 8. STANDING COMMITTEE ON PARLIAMENTARY ACCOUNTS (SCOPA) RESOLUTIONS 86 9. INTERNAL CONTROL UNITS 93 10. INTERNAL AUDIT AND AUDIT COMITTEES 94 11. PRIOR MODIFICATIONS TO AUDIT REPORTS 96 12. AUDIT COMMITTEE REPORT 97

PART D | HUMAN RESOURCE MANAGEMENT

1. INTRODUCTION 103 2. OVERVIEW OF HUMAN RESOURCES 103 3. HUMAN RESOURCES OVERSIGHT STATISTICS 105

PART E | FINANCIAL INFORMATION

1. REPORT OF THE AUDITOR GENERAL 141 2. ANNUAL FINANCIAL STATEMENTS 146

g-FleeT MANAGEMENT

1. PART A: GENERAL INFORMATION 234 2. PART B: PERFORMANCE INFORMATION 257 3. PART C: GOVERNANCE 271 4. PART D: HUMAN RESOURCE MANAGEMENT 292 5. PART E: ANNUAL FINANCIAL STATEMENTS 321

PLAY YOUR PART STOP THE SPREAD

4 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 5 PART A GENERAL INFORMATION

6 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 7 1. DEPARTMENT GENERAL INFORMATION

PHYSICAL ADDRESS: 45 Commissioner Street

Johannesburg

2000

POSTAL ADDRESS: Private Bag X83

Marshalltown

2107

TELEPHONE NUMBER: +27 11 355 7000

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS: www.roadsandtransport.gpg.gov.za

TWITTER: http://twitter.com/GPDRT

FACEBOOK: www.facebook.com/TransportGP

INSTAGRAM: Instagram.com/GPDRT

6 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 7 2. ABBREVIATIONS AND ACRONYMS

AGSA Auditor General of South Africa AO Accounting Officer BAS Basic Accounting System BBBEE Broad-Based Black Economic Empowerment BRT Bus Rapid Transit CEO Chief Executive Officer CFO Chief Financial Officer CIDB Construction Industry Development Board CIP Compulsory Induction Programme CLLT Computerised Learners Licence Testing CoJ City of Johannesburg CoT City of Tshwane CS Corporate Services CSIR Council of Scientific and Industrial Research DDG Deputy Director General DEA Department of Environmental Affairs GDID Gauteng Department of Infrastructure Development DLTC Driver Learner Testing Centres DoH Department of Health DoRA Division of Revenue Act DPSA Department of Public Service and Administration EAFCU Ethics, Anti-fraud and Corruption Unit ECSA Engineering Council of South Africa e - DRMS electronic Document Record Management Solution EIA Environmental Impact Assessment e - NaTIS electronic National Traffic Information System EPWP Expanded Public Works Programme EXCO Executive Council ESS Employee Self Service FIS Fleet Information System GCRA Gauteng City Region Academy

8 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 9 GDARD Gauteng Department of Agriculture and Rural Development GDE Gauteng Department of Education GDF Gauteng Department of Finance GDP Gross Domestic Product GDRT Gauteng Department of Roads and Transport GIAMA Government Immovable Asset Management Act GEYODI Gender Youth and People with Disabilities GFIP Gauteng Freeway Improvement Plan GPG Gauteng Provincial Government GTIA Gauteng Transport Infrastructure Act HAST HIV, AIDS, STI and Tuberculosis HDI Historically Disadvantaged Individuals HIV/AIDS Human Immune Deficiency Virus/ Acquired Immune Deficiency Syndrome HoD Head of Department HR Human Resource ICT Information Communication Technology IFM Integrated Fare Management IDMS Infrastructure Delivery Management System IGR Inter-Governmental Relations IPTN Integrated Public Transport Network IRPTN Integrated Rapid Public Transport Network IT Information Technology ITMP25 25 Year Integrated Transport Master Plan ITP Integrated Transport Plans JRA Johannesburg Roads Agency M&E Monitoring and Evaluation MEC Member of Executive Council MMC Member of the Mayoral Committee MoA Memorandum of Agreement MoU Memorandum of Understanding MTEF Medium Term Expenditure Framework MTSF Medium Term Strategic Framework MVRA Motor Vehicle Registration Authority MVR&L Motor Vehicle Registration and Licencing NANDUWE Nancefield Dube West Taxi Association NDoT National Department of Transport NDP National Development Plan NLTA National Land Transport Act NLTIS National Land Transport Information System

8 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 9 NMT Non-Motorised Transport NRTA National Road Traffic Act NYS National Youth Services OHS Occupational Health and Safety Act OLAS Operating Licence Administration System ORTIA O.R. Tambo International Airport PAJA Promotion of Administrative Justice Act PCF Premier’s Coordinating Forum PDI Previously Disadvantaged Individuals PDLTCs Provincial Driver Learner Testing Centres PERSAL Personnel Salaries PFMA Public Finance Management Act PMDS Performance Management Development System PRASA Passenger Rail Agency of South Africa PRMG Provincial Roads Management Grant PPP Public Private Partnership PSC Public Service Commission PTOG Public Transport Operations Grant QSE Qualifying Small Enterprises RAMS Road Asset Management System RISFSA Road Infrastructure Strategic Framework of South Africa RMPTS Road Maintenance Professional Teams RNMS Road Network Management System RMTC Road Traffic Management Corporation SANRAL South African National Roads Agency Limited SCM Supply Chain Management SED Socio-Economic Development SLA Service Level Agreement SMF Supervisory Monitoring Firms SMS Senior Management System SRN Strategic Road Network SPTN Strategic Public Transport Network SMME Small Medium Micro Enterprises TDM Transportation Demand Management TMR Transformation, Modernisation and Re-industrialisation TOLABs Transport Operating Licence Administrative Bodies ToR Terms of References U- AMP User Asset Management Plan VTC Vehicle Testing Centre WATA Witwatersrand African Taxi Owners Association

10 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 11 10 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 11 3. FOREWORD BY THE MEC

MR JACOB MAMABOLO | MEMBER OF THE EXECUTIVE COUNCIL

The term of the sixth administration is now in full swing albeit in a new environment that none of us could have planned for. We are now trav- ellers in a new normal. It is now more critical than ever before that we streamline our resources and work smart in achieving our goal of de- “...work smart in achieving our livering quality transport infrastructure to power economic growth and goal of delivering quality transport prosperity for the people of Gauteng. infrastructure to power economic “ In the global vision of this administration of Growing Gauteng Together, growth and prosperity for the the Department of Roads and Transport has a central role of turning people of Gauteng. around the fortunes of the people by changing the Apartheid-type spatial formation and patterns of movement.. It is this spatial formation that continues to deny ordinary people access to opportunities and thus impedes our ability as a province to open new spaces in the economy and create employment. This definition underpins our key objective of repositioning our province as the internal freight and logistics hub that will not only serve the coun- Transport and its supporting infrastructure, in our view, will play a trans- try but the entire Southern African Development Community and the formative role in our society only if we leverage on smart technologies, African continent efficiently. build a capable Department, recalibrate our project pipeline and thus, integrate all modes of transport to enable a seamless movement of goods We have dedicated the year under review towards pinpointing and locat- and people. This concept we have termed Growing Gauteng Together ing weaknesses within the Department and broadly in Municipalities. It through Smart Mobility. In its textbook definition, Smart Mobility inte- is, for this reason, the operationalisation of the Transport Authority of grates all modes of transport via wireless communications and applies Gauteng (TAG) could not be postponed. In this regard, the relevant Act is real-time data analytics and machine learning to make transportation now in operation and an interim Chief Executive Officer in Jack van der safer and more efficient. Merwe has been appointed.

12 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 13 In conjunction with the operationalisation of the TAG, we have done a suring that we urgently respond to the Growing Gauteng Together clarion lot of leg work towards the establishment of the Transport Infrastructure call. House, the nerve centre and powerhouse that will help us have a single view of all our operations towards building a smarter transport system These achievements would have never been realised had it not been coupled with a safe and efficient infrastructure. This smart centre will for the dedication of the entire DRT team and the senior management. enable us to have a bird’s eye view on the entire transport network in the I would also like to thank HOD Makhukhu Mampuru for his support and province, including various bus rapid transit systems and will render the hard work. stratified and disjointed planning process a thing of the past.

We continue making inroads in our efforts to integrate the minibus taxi industry into the mainstream of multi-modal transport network. Key to this is the modernisation and corporatisation of this industry which is still dogged by the trappings of its informalised past. We have operationalised this work with the establishment of the Gauteng Provincial Taxi Monitoring Committee (GPTMC) which is an important forum to set into motion the resolutions of the Gauteng Taxi Summit. Parallel to this work ______Mr J. Mamabolo is the Commission of Inquiry into Taxi Violence, led by retired Judge Jere- MEC for Public Transport and Roads Infrastructure miah Shongwe. The commission plays an important role in systematically 31 October 2020 rooting out violence that has become an albatross on the industry as it reconfigures itself for the future.

On infrastructure, we have continued supporting the Sedibeng District Municipality and the Emfuleni Local Municipality. In this regards, we have completed the upgrade of Moshoeshoe, Vilakazi, and Adams roads in Sebokeng and Evaton at an investment value of R14 million. The initiation of the Level 5 lockdown, a first in the history of our young democracy, resulted in many of the departmental projects and services being suspended.

This pandemic required the Department to put in place extraordinary procedures to address issues of public transport and the way in which h we carried out its services to the public. A COVID-19 transport plan was developed and implemented to address the significant risks and challenges posed by the pandemic. Since the announcement of Alert Level 5 Lockdown, we have cleaned 5 0000 (Five thousand) taxi ranks, and sanitised almost 39 million commuters. Through our coordination centre, the Derek Masoek office, coordinated the distribution of disinfection and disbursement of sanitisers.

To realise these outcomes we have had to think creatively and work smart pulling together our transport plans, human resources strategies and information technology capabilities to ensure that critical and essential services were operational so that public transport was not the weakest link in the battle against the pandemic.

We have come a long way as a department in aligning our programme to the Smart Mobility strategy and a lot of work must still be done in en-

12 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 13 4. REPORT OF THE ACCOUNTING OFFICER

MR M MAMPURU | ACCOUNTING OFFICER

OVERVIEW OF THE OPERATIONS OF THE DEPARTMENT: was the formalization and operationalization of the Gauteng Transport The 6th administration recognised the pivotal role Transport plays in Authority (GTA). The GTA Act came into operation on the 1st November supporting Gauteng’s Economic growth story. Thus, one of the priorities 2019 and an interim board was established to lead the GTA. An interim for the Department was the development of a Transport Service Delivery CEO was also appointed to lead the formalization and operationalization Plan which would focus on transforming the state of public transport to of the Authority. meet the expectations of the 4th industrial revolution. To this end, the Growing Gauteng Together Through Smart Mobility Plan was developed The spatial characteristics of the urban form in Gauteng dictate that sig- to address the Province’s transport challenges and provide an integrated nificant investment is required in road infrastructure. The provision of a transport system through smart mobility. The Plan is characterised by smart road system, therefore, continues to be a key strategic focus area the key focus areas of Urban Development, Infrastructure, Operations, of the Department to ensure sustainable urban mobility in Gauteng. One Institutions and enabling Technology. It is understood that the Plan op- of the successes for the year under review was the 98% expenditure of erates in conjunction with other Urban and Transport-orientated policies the transport infrastructure budget on key projects across the province. instituted at a national and municipal government level. Smart Mobility During the financial year under review, the Department completed the can be defined as “an effective and efficient mobility system utilising P158/2 (N14) Phase 2: Rehabilitation of P158 (N14) from Brakfontein to appropriate technologies” and is characterised by consistent and sys- Diepsloot which entailed the rehabilitation of 20.7kms of P158/2 (N14). tematic use of innovations (ICTs) to streamline transport management. P158/2. This view resonates with the objectives of the 6th administration, for it emphasises the need for efficiency, effectiveness, innovation and use of The rehabilitated road serves as a transport corridor between the City of technology as key ingredients in growing a competitive economy. Tshwane, the Northern suburbs of Johannesburg and Krugersdorp and therefore, it became imperative to ensure the road continued to provide The Plan is in its final stages and will be officially launched in the fi- a smart road system which integrated into the surrounding nodes. The nancial year 2020/21. The Department commenced with the implemen- K54 upgrade which is a multi-year project is continuing and will be com- tation of components of the Growing Gauteng Together Through Smart pleted in the next financial year. The smart roads network strategy also Mobility Plan during the year under review. One of the main components includes the rolling out of the following road infrastructure projects over

14 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 15 the Medium-Term Expenditure Framework (MTEF); the rehabilitation of monthly to monitor the implementation of the taxi resolutions and has road D483 between P6-1 (Bapsfontein) and D713 Cullinan, road P126/1 ensured progress is achieved and a good working relationship is main- between Ontdekkers road and P6/1 Tarlton and road P103/1 between tained with the taxi industry. N14 and N1. The second resolution implemented was the setting up and commence- The Sedibeng District Municipality was also provided support in the im- ment of the Commission of Inquiry into Taxi Violence which was led by provement of is road infrastructure with an R14 million road Infrastruc- retired Judge Shongwe. The Commission operates independently with ture Upgrade Investment Programme. Three roads were upgraded in the its administrative capacity and was gazetted to be operated for six (6) Emfuleni area and its citizens are now able to travel on safe and reliable months. The hearings officially commenced in the 3rd Quarter of the fi- roads which support economic growth and social cohesion in and the nancial year 2019/20 and have been supported by both the Department surrounding areas. and the taxi industry.

Another important transport service infrastructure investment came to As the Department engages in developing its strategic vision for the next fruition during the financial year which was the opening of the Kagiso 5 years, concurrently the Department is undertaking the realignment of Driver Learner Testing Centre (DLTC). The DLTC was built with cutting its organizational structure to ensure there is alignment with the strat- edge technology in response to the 4th Industrial revolution and brings egy of the Department. The structure will seek to ensure it employs the the department’s core services of a customer-centric transport regulatory talent, capabilities and expertise required for the Department to deliver services closer to the citizens, thereby reducing the burden of travel cost on its strategic mandate. The realigned organisational structure will be and time. finalised in the financial year 2020/21 and will be implemented over the MTEF. Aligned and in contribution to the National and Provincial priorities of strengthening job creation, the Department exceeded its planned year While there have been successes, the Department and indeed the Coun- target and created a total of 4, 126 job opportunities. The job creation try faced an unexpected and unparalleled crisis in the form of the Novel programme is linked to the Transport Infrastructure Programme and job Coronavirus (COVID 19) world pandemic. The President introduced a Na- opportunities are created through the Expanded Public Works Programme tional State of Disaster to address this crisis and implemented a national (EPWP) and provide employment opportunities to the most vulnerable lockdown on the 26th March 2020. The commencement of the National of the unemployed in the local communities. The EPWP job creation State of Disaster and the Level 5 lockdown, a first in the history of our programme ensures that the EPWP employees not only gain job oppor- democracy, resulted in many of the departmental projects and services tunities but also various skills in the transport construction sector that being suspended. Thus, many of the planned targets for the financial year enables them to become employable in the job market. could not be achieved.

The Department continues pursuing initiatives to achieve a modal shift to public transport. Engagement of Public Transport Operators is also part

of those initiatives. The Taxi Industry was, therefore, consulted in the

Taxi summit held in July 2019 which have further cemented relations be- “an effective and efficient mobility tween the Department and the Taxi Industry and a commitment to work system utilising appropriate “ towards a common goal of transforming the industry. The Summit yielded resolutions which the Department has translated into projects ranging technologies from improvement of service levels to skills development, transformation and economic empowerment. Another firm commitment was to modernise the industry and introduce the 4th Industrial Revolution (4IR) inter- The scourge of the COVID-19 pandemic required the Department to put ventions. The two main resolutions implemented were the establishment in place extraordinary measures to address issues of public transport and of the Gauteng Provincial Taxi Monitoring Committee (GPTMC). how the Department carried out its services to the public. Public transport, as mass mover of people, was a potential prime mode of transmis- The GPTMC’s purpose is to monitor the implementation of resolutions sion of the virus. Therefore, an immediate strategic plan was required agreed upon at the Provincial Taxi Summit. The GPTMC consists of mem- to prevent the spread of the virus via public transport and save lives, bers of the taxi associations and the Department. The Committee meets especially those of the essential and critical workers who were at the

14 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 15 frontline of the pandemic. A COVID 19 Transport Plan was developed and The Department was successful in engaging with various donors and implemented to address the significant risks and challenges posed by the stakeholders, both private and public, who provided vital resources and pandemic. Together with the transport plan, Human Resources strategies capacity which assisted the Department in successfully implementing its and information technology capabilities were put in place to ensure that COVID-19 transport projects. Further initiatives are also being planned critical and essential services were operational to provide interventions for implementation, one of which is to assist in the testing and tracking to address the pandemic. of commuters with the Department of Health.

The Public Transport Disinfection and Sanitisation Programme was im- However, concurrently some of the Department’s services, such as the plemented to reduce the risk of the transmission of the COVID-19 virus Driver Licence Testing Centres, the Transport Operating Licence Adminis- through the Public Transport system. A central command centre was trative Bodies (TOLABs) and the Gautrain Rapid Rail Link were suspended established at the Derek Masoek Center for the management of the during the level 5 lockdown in line with the national transport regulations COVID-19 Transport Plan and the distribution of disinfectants, sanitisers and directives. and personal protective gear to the public transport industry. The impact of the pandemic will leave lasting changes to the Department Taxis and busses were disinfected and commuters sanitised daily, to- and the Province. Therefore, agile strategies are being developed to en- gether with the introduction of wearing of masks and social distancing sure effective and efficient service delivery continues and new ways of in line with national transport regulations and directives. Five (5) Teams carrying out its mandate are implemented. with coordinators from both the GDRT and Taxi Industry were allocated to the three (3) Municipal (Cities of Joburg, Tshwane, and Ekurhuleni) and two (2) District (West Rand and Sedibeng) Regions to assist with providing capacity and resources in the fight against the COVID-19 Pandemic.

OVERVIEW OF THE FINANCIAL RESULTS OF THE DEPARTMENT:

Departmental receipts

2019/20 2018/2019 Actual Amount (Over)/Under Actual Amount (Over)/Under Departmental receipts Estimate Estimate Collected Collection Collected Collection R’000 Tax Receipts 4,025,181 4,135,192 (110,011) 3,811,724 3,961,563 (149,839) Casino taxes

Horse racing taxes

Liquor licences Motor vehicle licences 4,025,181 4,135,192 (110,011) 3,811,724 3,961,563 (149,839) Sale of goods and services other than 83,991 60,682 23,309 79,537 58,464 21,073 capital assets Transfers received Fines, penalties and forfeits Interest, dividends and 67 13 54 63 14 49 rent on land Sale of capital assets Financial transactions 1,676 327 1,349 1,587 22,187 (20,600) in assets and liabilities Total 4,110,915 4,196,214 (85,299) 3,892,911 4,042,228 (149,317)

16 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 17 The Department is the main contributor towards its revenue generated • Interest and penalties expected to be received; in the Province, making up a contribution of more than 60 per cent of the • Previous revenues collected; and entire provincial collection. This revenue is primarily generated through • Trends in the motor industry in the country. tax receipts arising from motor vehicle registration and licencing fees. In generating this revenue, the Department is also liable for direct charges, The second contributor to revenue generation is sales of goods and which includes amounts that are deducted from collected revenue to services other than capital assets which consist of the sale of tender reimburse the primary collectors/agents of that revenue on behalf of the documents. The growth in revenue from this source over the years was Department. The other departmental revenue items are minor in com- due to the high sales of documents to the prospective tenderers. The parison. The motor vehicle licencing is by far the most productive source Department had several infrastructure projects out on tender during that of revenue for the Department. period. The interest, dividends and rent on land mainly consist of items such as The increases in the revenue collections from the previous financial interest on staff debts, a minor contributor to the total revenue collec- years were R 3.3 billion in 2015/16, R3.5 billion in 2016/17 and R 3.7 tion. The inconsistent trend can be attributed to the difficulty in accu- billion in 2017/18. The revenue is expected to increase further over the rately projecting for these items owing to their uncertain nature. MTEF from R 4.1 billion in 2019/20 to R 4.6 billion in 2021/22 due to expected increases in vehicles on the road, annual increases in tariffs The Department also collects revenue from transactions in financial as- combined with efficient revenue collection. In concluding the estimates, sets and liabilities, which consists of fees for the recovery of debts. The the following factors were considered, namely: variations over the seven years under review can be attributed to the difficulty in budgeting for this item owing to its uncertain nature. • Consumer Price Inflation Index (CPIX); • Vehicles on the road; • Direct cost expected to be paid from the revenue account;

Programme Expenditure

2019/20 2018/2019 Final Appro- Actual Expen- (Over)/Under Final Appro- Actual Expen- (Over)/Under Programme Name priation diture Expenditure priation diture Expenditure R’000 1.Administration 383,279 334,097 49,182 332,154 285,736 46,418 2.Transport Infrastructure 2,240,490 2,159,347 81,143 2,825,907 2,740,989 84,918 3.Transport Operations 2,689,995 2,226,733 463,262 2,537,507 2,311,691 225,816 4.Transport Regulation 332,942 289,325 43,617 294,077 291,626 2,451 5. Gautrain 2,153,315 2,153,314 - 1,945,268 1,945,268 - Total 7,800,020 7,162,816 637,204 7,934,913 7,575,310 359,603

The table above indicates the services of the Department are categorised containment measures has played a vital role in arriving at the recorded under the Programmes, which are fully aligned to the uniform budget and underspending within this Programme. Programme structure for the transport sector. The Department continuously aims to spend the total allocated budget to ensure the delivery of Programme 2: Transport infrastructure: quality service. This Programme is the main core function of the Department, the underspending was mainly as a result of the non-filling of project management Programme 1: Administration: and core engineering posts. This Programme is responsible for the administrative functions of the De- partment. The spending as at the 31 March 2020 is less than what was Programme 3: Transport Operations: anticipated in comparison of the projected expenditure. The moratorium The underspending within this Programme was mainly as a result of the on the filling of non-core vacant posts and the implementation of the cost cancellation of the subsidised bus operations in Sedibeng and Mamelo-

16 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 17 di, as well as the operations of North West Star that is not operating at Future plans of the Department optimal levels. There is also the issue of the DNOs (Did Not Operate) pen- The Department has developed a Project Management Office (PMO) alties levied against the operators which increased the under-spending. which is aimed at improving the project management of major infrastructure projects of the Department and ensure efficient service delivery. The Programme 4: Transport Regulation: PMO will be operationalised in the financial year 2020/21 and will be The underspending within this Programme was due to the non-filling of capacitated with the technical expertise required for infrastructure proj- core transport regulation and monitoring posts. ect management.

Programme 5: Gautrain: Public-Private Partnerships All transfers to Gautrain were made in line with the 2019/20 financial The Department did not enter into any new Public-Private Partnerships year payment schedule. (PPP) for the year under review. The only existing PPP is the Gautrain Rapid Link Project with the Bombela Consortium. Virements/roll-overs There were no roll-overs for the 2019/20 financial year. Discontinued activities/activities to be discontinued All year-end shifts and virements have been submitted to the Gauteng None Provincial Treasury. The request for the year-end and virements was to clear over/under expenditure within the Programmes after the Sub Pro- New or proposed activities grammes. None

Unauthorised expenditure Supply Chain Management (SMC) The Department has effectively monitored and controlled its spending More than 99% of the Department’s procurement plan requires procure- patterns to ensure the prevention of unauthorised expenditure. There ment through the competitive tender process. The tender process has was no unauthorised expenditure for the 2019/20 financial year. been plagued with challenges resulting in only four (4) tender awards. Some of these challenges and resolutions are:

No. Challenges Resolutions

1 The administration of the probity audit process and outcomes. The function of the probity audit services has been decentralised to the Department as from April 2020. The Department has implemented new measures to improve the performance management of the probity audit services.

2 The application and interpretation of sections of the Preferential Pro- The matters of the legislative interpretation are receiving attention curement Regulations 2017 and the SA Constitution. through the support of Senior Council opinions which will be followed by changes to internal policies.

3 Legal engagement/opinions required due to the public adjudication of The matters are ongoing per case. tenders.

4 Internal deficiencies in planning from the implementing business units The Department has commissioned an organizational structure review and constraints on SCM capacity. from which it intends to address the internal deficiencies.

The Department did not participate in any unsolicited bid proposals for the financial year under review. The incurrence of irregular expenditure relating to bus subsidy contracts continues to pose a challenge. The Department has commenced with a competitive tender process to address the matter of appointing service providers on new bus contracts.

18 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 19 Gifts and Donations received in kind from non-related parties Statement of Gifts, Donations and Sponsorships Received.

2019 / 20 2018 / 19 Name of Organisation Nature of Gift, Donation or Sponsorship R’000 R’000

Received in kind

Old Mutual Hamper (diary, pen, mug, small fan, cooler bag and Old Mutual Limited - 1 lunch)

Gauteng Provincial Legislature Picnic pack - 2

Hand sanitizer (116 x 500ml, 35 x 20 litres, 135 x 5 litres and 54 x 25 Clinex 300 - litres) and 3, 000 gloves

Subtotal 300 3

TOTAL 300 3

Exemptions and deviations received from the National Treasury Other None None

Events after the reporting date Acknowledgement/s or Appreciation The international Corona Virus (COVID-19) pandemic has been an unprec- I wish to convey my sincere thanks and appreciation to the Transport edented and unforeseen event which has impacted negatively on the so- fraternity in their continued support and engagement with the Depart- cial and economic welfare of all countries worldwide. ment with the common agenda of improving the safety, reliability and affordability of transport for all the citizens of Gauteng. A special note The declaration of a state of disaster by President of the Republic of of appreciation to the staff of the Department, for their commitment and South Africa ushered in an array of legislative measures, amongst them dedication towards achieving the Department’s mandate. being a national period of lockdown commencing 27th March 2020. Such date of commenced coincided with the last 4 days of the Department’s 2019/2020 financial year-end. The economic impact of the national lock- Approval and sign off down has been extremely severe on all business activities which has translated in the loss of many jobs. The Department continued to provide essential services during this period of national lockdown. In support of all essential services, i.e. law enforcement, health care, banking and other designated services the Department identified the strategic need to respond to the pandemic by focussing on preventing the loss of lives both within the Department and that of the users of public transport within the Province. As guided by research, with most people within the prov- ______Mr. M. Mampuru ince using public transport, the probability of an alarming increase in the Accounting Officer spread of COVID-19 through the aid of public transport is extremely high Department of Roads and Transport and dangerous for the people of Gauteng. Date: 31 October 2020 The Department’s financial responsibility to support its strategic pandemic response plan resulted in parts of the 2020/2021 budget being reprioritised towards COVID-19 priorities. Also, the Department acted as a conduit in the receiving of COVID-19 personal protective equipment (PPE) for use within the public transport environment for the protection of public transport commuters. For the 2019/2020 financial year, the De- partment received approximately R300, 000 worth of PPE from different donors for the benefit of the public transport operators.

18 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 19 5. STATEMENT OF RESPONSIBILITY

To the best of my knowledge and belief, I confirm the following:

• All information and amounts disclosed throughout the annual report are consistent. • The annual report is complete, accurate and is free from any omissions. • The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury. • The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks and guidelines issued by the National Treasury. • The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information. • The Accounting Officer is responsible for establishing, and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements. • The external auditors are engaged to express an independent opinion on the annual financial statements.

In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the Department for the financial year ended 31 March 2020.

Yours faithfully

______Mr. M. Mampuru Accounting Officer Department of Roads and Transport 31 October 2020

20 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 21 6. STRATEGIC OVERVIEW

6.1 Vision A modern integrated, efficient and sustainable transport and road infrastructure system in Gauteng.

6.2 Mission To facilitate and provide an integrated transport system that: • Is reliable, accessible, safe and affordable; • Promotes seamless mobility and social inclusion; • Is environmentally sustainable; and • Supports industrialisation and radical socio-economic transformation.

6.3 Values The Department of Roads and Transport is guided by the following values:

CORE VALUES / PRINCIPLES

Innovative Continuously exploring new and creative methods to improve and fast track service delivery

Good governance Facilitate an inclusive government that ensures integrity, transparency, accountability, and trustworthiness.

Teamwork Promote consultation, accessibility and cooperation in our activities.

Professionalism Ensure a high level of competence, efficiency, and good work ethic in executing our duties.

Commitment To remain dedicated to rendering high-quality services to the citizens.

Ethical We commit to being principled, fair and just in our conduct and in service to the people of Gauteng.

Responsiveness (Activist) Our staff will be proactive, approachable, receptive, and be quick to respond to the needs of the citizens.

20 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 21 7. LEGISLATIVE AND OTHER MANDATES

The Republic of South Africa Constitution (1996) grants all Provinces with concurrent competencies. The Department‘s mandate is derived by the following list of National and Provincial laws and policies.

National Policy and Legislative Mandates

Legislation Act / Policy

Administrative Adjudication of Road Traffic Offences Act Act 46 of 1998

Advertising on Roads and Ribbon Development Act Act 21 of 1940

Construction Industry Development Board Act Act 38 or 2000

Cross-Border Road Transport Act Act 4 of 1998

Deeds Registration Act Act 47 of 1937

Division of Revenue Act (DORA) Act 1 of 2010

Environmental Conservation Act Act 73 of 1989

Government Immovable Assets Management Act Act 19 of 2007

Inter-Governmental Relations Act Act 97 of 1997

National Land Transport Act Act 5 of 2009

National Land Transport Strategic Framework Section 21 of Act 22 of 2000

National Road Traffic Act Act 93 of 1996

National Road Traffic Safety Act Act 12 of 1972

Public Finance Management Act Act 1 of 1999

Provincial Policy and Legislative Mandates

Legislation Act / Policy

Gauteng Planning and Development Act Act 3 of 2003

Gauteng Road Infrastructure Act Act 8 of 2001

Gauteng Transport Framework Revision Act Act 8 of 2002

Gauteng Transport Infrastructure Act Act 8 of 2001

Gautrain Management Agency Act Act 5 of 2007

Provincial Road Traffic Act Act 10 of 1997

22 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 23 8. ORGANISATIONAL STRUCTURE

MEC Mr J. Mamabolo

HOD CEO (GMA) INTERIM CEO (TAG) Mr M. Mampuru Mr W. Dachs Mr J. Van Der Merwe

ACTING DDG ACTING DDG DDG CFO CEO TRANSPORT ROAD INFRASTCUTURE CORPORATE SERVICES FINANCE g-FleeT Mr F. Masuku Mr V. Phala Ms M. Harker Mr S. Zondo Ms N. Maninjwa

22 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 23 9. ENTITIES REPORTING TO THE MEC

Gautrain Management Agency The Gautrain Management Agency (GMA) is a Schedule 3C public entity that is under the oversight of the MEC for Public Transport and Roads Infra- structure. The MEC is the Executive Authority of the GMA and the GMA Board is the Accounting Authority as contemplated in the PFMA. The GMA Board is appointed by the MEC.

Name of Entity Legislative Mandate Financial Relationship Nature of Operations

Gautrain Management Gautrain Management Agency (GMA) has been established The GMA receives its The main objective of Agency in terms of the GMA Act and listed under Schedule 3 (c) of MTEF funds through the the GMA is to manage, the Public Finance Management Act (PFMA) as a Provincial Department’ vote. coordinate and oversee Public Entity. the Gautrain Rapid Rail Link Project.

National Policy and Legislative Mandates:

• Public Finance Management Act No. 1 of 1999.

• Environmental Conservation Act No. 73 of 1989.

• National Railway Safety Regulator Act No. 16 of 2002.

• National Treasury Regulations.

• Division of Revenue Act.

• Consumer Protection Act No. 68 of 2008.

Provincial Policy and Legislative Mandate

• Gauteng White Paper on Transport Policy.

• Gauteng Transport Framework Revision Act No. 8 of 2002.

• Gauteng Legislation on Development Planning.

• Gautrain Management Agency Amendment Act No. 6 of 2008.

• Provincial Growth and Development Strategy (PGDS).

• Gauteng Spatial Development Perspective.

24 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 25 STRATEGIC PERFORMANCE OVERVIEW 2019/2020 Financial Year

The Sixth Administration of the Gauteng Provincial Government (GPG) mitigated through the security enhancement plans developed by the set out an ambitious programme known as “Growing Gauteng Together: Concessionaire. The GMA and the Concessionaire conducted rail reserve Our Roadmap to 2030” This programme is very relevant to public trans- inspections to identify external factors that might impact on the protec- port and Gautrain as it focuses on the economy, jobs and Infrastructure, tion of the railway alignment, given the ongoing cable theft experienced integrated human settlements and building a capable, ethical and devel- in various industries and sectors across the country. Fare evasion was opmental state. In the Financial Year ending 31 March 2020, the Gautrain well below the required level and never exceeded 0.04% in any month in Management Agency (GMA) and Gautrain were part of this strategy in the year under review. terms of growing the economy through smart investments in transport, as well as restructuring the urban form around transport nodes and using The assurance of asset management systems by the Concessionaire was technology as an enabler of better and more efficient transport systems. boosted by the completion of a System asset audit by independent auditors. To give effect to these strategic Provincial initiatives and to continue in its mandated role related to the current Gautrain Concession, the strat- The planning of network extensions continued with the route alignment egy of the GMA is to continue managing, coordinating and overseeing for Phase 1 of the extensions, while engagements were pursued with the the operation and maintenance of the Gautrain Project and to plan and National Treasury and National Department of Transport on the approval implement the extension of the System to accommodate future demand of the feasibility study completed in 2016. and new services as identified in the ITMP25 for Gauteng. Through to the end of the fourth quarter of the 2019/20 Financial Year, The GMA Board completed the second year of its term and continued to there had been good progress in terms of increasing passenger numbers provide governance oversight to the Agency. The GMA also continued to and up to the end of February 2020, the total year to date patronage was move towards an outcome-based approach in terms of the application of 3,3% higher than the previous year. However, in March 2020, the daily the King IV principles. The GMA Board is committed to ensuring that the passenger numbers started declining rapidly as the public responded to Gautrain operates sustainably, with a clear commitment to governance developments around the Covid-19 pandemic. In the case of the Gener- and in support of the Provincial Government’s economic and social im- al Passenger Service (GPS), the decline compared to March 2019 was peratives. 28.2% while the Airport Service (APS) showed a decline of 49.0% due to the impact on air travel. Overall some 460,550 fewer passenger trips The GMA made good progress in the 209/20 Financial Year in several were recorded in March 2020 compared to March 2019. Bus passenger areas. In terms of oversight of the Concessionaire, the GMA ensured high trips followed a similar trend. This meant that the annual target for train levels of operational efficiency. The train service operations achieved an passengers could not be met. Combined with continued slow growth in average availability of 99.66% and punctuality of 98.11% over the review the economy and jobs in Gauteng, these factors resulted in an overall period. This was backed by good personal and property safety and secu- drop in train passengers of 7.56% from the previous Financial Year and a rity within the System. Low levels of fare evasion were also maintained. 6.48% increase in bus passengers. Safety and security targets for passengers and the System were met and all incidents that occurred during the reporting period have been

Rail Bus

Service Type Airport Passenger General Passenger Total Bus Total

FY 18/19 1 456 967 12 515 515 13 966 482 3 982 971

FY 19/20 1 341 304 12 588 612 13 929 916 4 255 503

% Change -7,56% 0,58% 0,26% 6,84%

TABLE1: PASSENGER TRIPS PER FINANCIAL YEAR ON THE AIRPORT SERVICE, THE GENERAL PASSENGER SERVICE AND THE BUSES

24 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 25 The GMA continued to engage with the Concessionaire to implement The GMA continued to commit significant resources to plan and im- a strategy to attract passengers to use the Gautrain services known as plement extensions and expansions to the current Gautrain network, Operation Shift. This strategy is a combination of improved service offer- especially insofar as these related to increasing capacity in key areas ings and marketing and it started bearing fruit in throughout the 2019/20 impacting on passenger demand. The key project for the acquisition of Financial Year up until the significant negative effect of Covid 19 on Pub- train, depot and signalling assets met various milestones and will contin- lic Transport in general reversed the growth trajectory of the Gautrain ue. Alternative strategies to supplement rail service capacity are being passenger demand. explored. The roll-out of the changes to the automated fare collection system to accept debit and credit cards at the various fare gates was Numerous communication and marketing initiatives targeted at potential successful and well received by users of the System. and current users of the Gautrain were undertaken and will increase as part of the endeavour to attract passengers. The Concessionaire continued with the replacement of the current bus fleet in terms of its contractual obligations and, in so doing, provided a Socio-Economic Development (SED) targets were met and exceeded as significant stimulus to the local bus manufacturing industry. the Gautrain continued to contribute positively to the Gauteng economy. SED deliverables directly demonstrate the benefits of the Gautrain in Information and Communications Technology (ICT) strategic initiatives terms of shareholding by black persons and black women, procurement, planned for the 2019/20 Financial Year were completed. The ICT Unit con- sub-contracting and employment equity elements. From a GMA expen- tinued to support the GMA to function in a seamless, secure and reliable diture perspective, the target for expenditure through Emerging Micro manner while allowing for organisational knowledge to be preserved and Enterprises (EMEs) and Broad-Based Black Economic Entities (BBBEEs) shared. The adoption of cloud technologies has proved invaluable during were met and exceeded, while expenditure through women-owned en- the national lockdown caused by the COVID-19 pandemic. The GMA was tities and Qualifying Small Enterprises (QSEs) were narrowly missed yet able to transition from an office-based workforce to a fully functional reflected a significant improvement on achieving expenditure targets in remote workforce with minimal effort or impact for the Agency. previous years. Knowledge Management (KM) activities linked to the strategic goals of The GMA’s Social Investment Programme (SIP) contributed to the the Agency have been on track. These included mainly the implemen- achievement of social development objectives in education and commu- tation of the records management policy and the KM strategy and the nity care, disbursing almost R8 million to beneficiaries, including NGOs provision of document control services to support the business in its man- and academic institutions. agement of the Concession Agreement.

The GMA also reached levels of maturity with a low turnover of staff and The full 2019/20 GMA Integrated Annual report is available to the public good performance in terms of its mandates under the GMA Act. In terms and stakeholders. of human capital (HC), the GMA Board approved a new organisational structure that better reflects its increased mandate. The GMA currently has 99 filled positions out of 110 available posts.

Policies and frameworks were developed and implemented, including the continued roll-out of the Enterprise-Wide Risk Management System.

At Marlboro, Sandton, Centurion and Hatfield Stations, the Gautrain has midibus operations which continue to be supported by commuters, with an increase of 60% patronage year-on-year. These services are provided by local taxi associations and expand the use of the Gautrain in a way that benefits both public transport users and the taxi associations. Contracts for services at Rhodesfield and Rosebank Stations were in preparation at the end of the Financial Year and services are expected to commence soon. Partnerships with commercial companies have yielded benefits, such as dedicated shuttle bus services operated by these third parties, thereby expanding the reach of the Gautrain.

26 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 27 g-FleeT MANAGEMENT

g-FleeT Management is a trading entity of the Gauteng Department of Roads and Transport and is under the oversight of the Head of Department. The entity is managed by the Chief Executive Officer.

Name of Entity Legislative Mandate Financial Relationship Nature of Operations

g-FleeT Management • Public Finance Management Act (PFMA) g-FleeT Management is a trading The entity’s operations are largely • Treasury Regulations entity of the Department and it’s regulated by the National Transport • Treasury practice notes formally known as the government Circular No. 4 of 2000, which governs • Public Services Act motor-vehicle unit. all matters relating to the utilization • Public Service Regulations of government-owned transport and • Cabinet Memo of 1988 related transport. • Transport Circular 4 of 2000 • National Road Traffic Act of 1996

The Annual Report for g-FleeT Management is included on page 232 of this report.

26 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 27 PART B PERFORMANCE INFORMATION

28 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 29 1. AUDITOR GENERAL’S REPORT PREDETERMINED OBJECTIVES

The AGSA currently performs certain audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the report to management, with material findings being reported under the Predetermined Objectives heading in the Report on other legal and regulatory requirements section of the auditor’s report.

Refer to page 141 - 144 of the Report of the Auditor General, published as Part E: Financial Information.

28 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 29 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE

2.1 SERVICE DELIVERY ENVIRONMENT

Transport Infrastructure Further rehabilitation projects were also prioritized to be undertaken over The Gauteng Government utilises its transport network as a catalyst to the next 5 years to ensure the improvement and expansion of the road drive the socio-economic development of the Province. Therefore, the network. These include the rehabilitation of road D483 between P6/1 Gauteng Department of Roads and Transport (GDRT) is responsible for (Bapsfontein) and D713 Cullinan, road P126/1 between Ontdekkers road improving the provincial road infrastructure through the construction of and P6/1 Tarlton and road P103/1 between N14 and N1. new roads and improving its maintenance of existing roads. GDRT has positioned itself towards achieving its goal of a strategic economic trans- Evaton and Sebokeng road infrastructure upgrade port infrastructure that stimulates socio-economic growth. It maintains a In August 2019, the Department launched a R14 Million road upgrading provincial road network consisting of 5, 638km of roads (4, 248.44km project in Evaton and Sebokeng in the Sedibeng District Municipality. surfaced and 1, 389.10km gravel roads). The Department identified Moshoeshoe Vilakazi Streets and Adams road for resurfacing upgrades due to road deterioration. These rehabilitation It has executed the following projects towards providing a safe and reli- upgrades were completed in December 2019 and have provided a safer able road infrastructure and network for the ease of mobility for people and reliable road network for the citizens of Emfuleni. and goods in Gauteng: Provincial Road Maintenance The Department successfully executed its Transport Infrastructure Main- Road infrastructure rehabilitation tenance Programme which yielded the following achievements: 579, The Provincial road network remains an integral asset of the Department 800.00m2 of the provincial surfaced roads were rehabilitated ensuring and the maintenance of its high-quality standard remains a key focal improved socio-economic accessibility, road quality and travel safety of area. In response to this, the launch of the R114 road rehabilitation proj- residents traversing these roads. It has also contributed to enhancing ac- ect in Muldersdrift, Johannesburg was undertaken during the financial cessibility to economic hubs, supporting the tourism industry, increased year under review. This is an eighteen months’ project with a total project accessibility to markets and provided employment opportunities to local cost of R 157 million and entails the rehabilitation of the current road and communities. the realignment and reconstruction of the intersection to Cedar road. The The Department performed its routine road maintenance functions to rehabilitation of the road is in line with the Department’s commitment preserve the status of existing roads infrastructure in the various regions to providing high-quality road infrastructure that promotes economic where the following projects were executed: growth and social cohesion. • 132, 507.72m² roads resealed; • 78, 57km roads re-gravelled; The Department also commenced with the heavy rehabilitation of the • 85, 552.92 m² of potholes patched; and P39/1 from Diepsloot to Muldersdrift, road P156/3 (R42) from P155/1 to • 1, 994.56km gravel road bladed. D2563 in Vanderbijlpark and road P241/1 (R554). These projects were originally projected to be completed in the financial year 2021/22, are The above-mentioned projects were completed in the Benoni, Bronk- now being envisaged to be completed in the financial year, 2022/23 due horstspruit, Krugersdorp, Pretoria and Vereeniging regions to improve the to the impact of the COVID-19 pandemic. provincial road network.

30 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 31 Job opportunities/training Programmes associations at the signing ceremony held at the Hector Pietersen The Department’s progress on the creation of job opportunities has im- Memorial on 11th June 2019. This paved the way for a cease in proved through the number of infrastructure projects implemented across hostilities and continued engagements with the Department to the Province. All job opportunities created through the Expanded Public resolve issues of conflict. Works Programme (EPWP) are created through the Transport Infrastruc- ture Programme. The GDRT created a total of 4, 126 job opportunities • Opening of the new Kagiso Driver Learner Testing Center exceeding its planned target for the financial year 2019/20. The Depart- (DLTC) ment’s EPWP Programme not only provides employment opportunities The new R19 million Kagiso DLTC officially opened its doors for to the most vulnerable of the unemployed in the province, but it also services to the public in April 2019. This project is part of the ensures that they gain various skills in the transport construction sector Department’s strategy to bring its customer-centric services closer which enables them to become employable in the job market. to the public thereby, reducing citizens travel cost and time. The DLTC is equipped with cutting edge technology that responds to The graph below indicates the job creation statistics per quarter. the 4th Industrial revolution as a smart building designed to serve its clients without sole dependency on the electricity grid. The Job Creation 2019/20 Department has also ensured it recruited and employed staff from the local areas to reduce travel cost and time for officials. 154 620 • Women in Transport and Construction Summit On 5th September 2019, the Department hosted a Women in Trans- port Infrastructure Roundtable as a platform for women to raise 587 2 765 challenges facing the industry and proposed new ways of growing the sector. The Summit themed “25 years on, what is the role of women in construction” was attended by approximately 250 delegates, representing various transport and construction industries. The Department committed to holding regular interactions with Quarter 1 Quarter 2 Quarter 3 Quarter 4 women who participate in the transport industry and its infrastruc- Improving travel safety on Moloto Road for Gauteng citizens ture in a quest to transform the sector. One of the resolutions taken Moloto road has been a site for many road accidents over the years. The was to host a seminar with Widows in the Taxi industry, which the Department identified the upgrade of this road as a priority and hand- Department committed to undertake during the October Transport ed over the rehabilitation and maintenance of Moloto Road to SANRAL Month. on 15th November 2019. The event was led by the National Ministry of Transport and attended by National Department of Transport, Govern- • Transport Service Delivery Facilities Visits ment Departments and Agencies, Public Members, Taxi Industry and The Department conducted site inspections on the following key the Media. A further initiative was introduced in January 2020 by the transport infrastructure facilities identified in the State of the Gauteng MEC for Public Transport and Road Infrastructure, together with Province Address (SOPA) as transport nodes which requires urgent Mpumalanga Public Works, Roads and Transport MEC, with the unveiling attention from the Gauteng Provincial Government. of the new fleet of busses to service communities along Moloto Road. These initiatives seek to improve commuters travelling time and safety » Bophelong Taxi Rank, on this road. » Mabopane Intermodal, » Bree and Noord Taxi rank, Public Transport Services » Marabastad and Bloed Taxi rank, and • Taxi Operations re-open in Soweto » Germiston Taxi Rank. The Department re-opened the taxi operations in Soweto, following the signing of a peace deal between the Nancefield Dube West After these site visits, the Department is developing a Taxi Rank Taxi Association (NANDUWE) and Witwatersrand Taxi Associ- economic nodes model to upgrade identified taxi ranks into taxi ation (WATA). The taxi ranks and routes were closed in Soweto economic hub nodes over the next five years. during the previous financial year, 2028/19, due to taxi operations violence. The peace deal agreement was entered into by the two

30 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 31 • Vaal Top Six Engagement preparatory actions that could be taken to respond to the pandem- The Department engaged with representatives from the taxi indus- ic. The plan ensured continued service delivery within the current try in the Vaal region to resolve matters affecting the taxi industry context of this global pandemic. A Command Centre was set up at in the Sebokeng and Evaton areas. The engagement was held in Derek Masoek to assist in developing and implementing interven- Masoheng Industrial offices in Sebokeng on 22nd October 2019. tions to procure materials and disinfect taxis, taxi ranks and busses which were in operation and to sanitise passengers. • Provincial Taxi Summit The Department convened a Provincial Taxi Summit in July 2019 On the 24th March 2020, the President of the Republic of South with the purpose to: Africa announced the Country was entering a State of Disaster » Assess the extent of implementation of previous resolu- Management and going into lockdown level 5 to curb the spread of tions raised at both the inaugural July 2016 Taxi Indaba the Corona Virus. The Department continued to provide essential and Summit; and critical services and implemented the Transport Disinfection » Reaffirm the commitment to growing and supporting the and Sanitisation Programme in the public transport sector with Mini-bus Taxi Industry; and various stakeholders to curb the spread of the virus in the public » Deliberate on strategies to implement previous resolu- transport system and prevent the loss of lives. Engagements with tions and modernise public transport system. public transport industries, stakeholders and donors continued to source and procure critical materials, and resources, implement The Summit was a success with over 400 delegates from the two systems and processes and engage volunteers to curb the spread major taxi associations, Gauteng National Taxi Alliance (GNTA) and of the virus through public transport modes. the South African National Taxi Council (SANTCO, Gauteng Prov- ince) in attendance. Resolutions were adopted as well as a decla- A Public Transport Coordination Committee was set up with all ration signed by the Premier and Chairpersons of both Association. public transport role players to manage the Public Transport Dis- One of the resolutions was the establishment of a Taxi Commission infection and Sanitisation Programme and to proactively address which was initiated by the Department during the financial year identified challenges. Regional coordination centres in the Cities under review and chaired by retired Judge Shongwe. of Joburg, Tshwane and Ekurhuleni and the District Municipalities of West Rand and Sedibeng were established to coordinate and • Technology and Innovation conference manage the Transport Distribution, Disinfection and Sanitisation The Technology and Innovation Conference was held at the projects. University of Pretoria on 16th October 2019. The conference was attended by technology experts and innovators from the public and Disinfectants, sanitisers and Personal Protective Gears (PPEs) were private sector as well as academia. The focus was to engage in sourced and distributed to operational taxi and bus operators for developments, share ideas around transport digital and technologi- the daily disinfection of the taxis and busses, cleaning of taxi ranks cal innovation in the country. and sanitization of commuters. The Department, together with the Department of Community Safety as monitored the adherence • Public Transport and Infrastructure response to COVID19 to national legislation and directives on public transport loading Since the announcement of the first COVID-19 positive tested capacity, social distancing and wearing of masks. South African patient, the Department compiled a COVID-19 Cor- porate Business Continuity Plan to combat the envisaged spread Focused on combating the spread of Coronavirus, the Department of the virus across the Public Transport System in the Province. implemented the following critical measures during the level 5 This Plan focused on assisting with implementing effective lockdown period in respect of its Infrastructure Programme in line measures to ensure departmental productivity, adopt robust and with the various State of Disaster national legislations: flexible arrangements which would help ensure that the impact of a. All construction projects were stopped whereas Projects disruptions caused by the Novel Coronavirus (COVID-19) would be Managers were on standby, minimised. b. All Consultants, Professional Service Providers for planning, designing and supervision of projects worked The Business Continuity Plan identified various tools such as a remotely, checklist of some of the key risks to the continuity of the Depart- c. Road safety being an essential service, the departmental ment’s business activities during the outbreak of COVID-19 and of maintenance teams and contractors continued to monitor

32 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 33 the Provincial network to monitor and respond to activi- The Department’s Transport Disinfection and Sanitization Pro- ties such as sinkholes and potholes patching during the gramme will continue as long as the Province, Country and the lockdown period, and World battles the COVID-19 pandemic to help save the lives of the d. The departmental standby team worked together with citizens of Gauteng by providing a safe public transport system, provincial traffic police to clear the debris when accidents contribute to the socio-economic recovery of the Province and con- occurred on the roads network. tinue to adopt agile systems and processes as the country adapts to the new normal. Following COVID-19 regulations on movement of goods and services, the Minister declared processing of Abnormal Vehicle Per- 2.2 SERVICE DELIVERY IMPROVEMENT PLAN (SDIP) mits for transportations of certain categories of goods and services as essentials. In response, the Department’s Abnormal Vehicle Per- The Department completed a Service Delivery Improvement Plan. The mit office restructured its operations to ensure business continuity. tables below highlight the service delivery plan and the achievements Operations continued in compliance with COVID-19 regulations. to date.

Key service 1: To increase the number of operating/ permits issued and permits converted into operating Licences. Main services Beneficiaries Current / Actual Desired standard Actual standard of service achievement of service Number of permits converted Public transport operators 181 1,500 65 into operating Licences.

Key service 2: The number of motor vehicle licenses renewal at Registration Authority (Ras) Main services Beneficiaries Current / Actual Desired standard Actual standard of service achievement of service Annual renewal of motor Vehicle owners and titleholders R 4,131,776 R 4,6 million R 4,131,776 vehicle licenses. through the Ras.

Batho Pele arrangements with beneficiaries (Consultation access etc.) Current/actual arrangements Desired arrangements Actual achievements

Forums Establishment of committees Held consultations through the Gauteng Freight Forum, Gauteng Rail Committee, the Integrated Transport Plan Committee and the Transport Technical Working Committee (TTWC) to address transportation needs in Gauteng.

Social Facilitation Stakeholder Consultation Informed customers, community members and other staff members through stakeholder consultation.

Media Networking Sessions Informed public Improved image and informed public.

Publications including Newsletters Informed public Informed internal and external stakeholders.

Infrastructure planning Informed infrastructure planners Providing updated and accurate provincial traffic data.

Service delivery information Current/actual information tools Desired information tools Actual achievements

Monthly, Quarterly and Annual Report Intranet, Website and Database Informed internal and external stakeholders.

Brochures, Posters, Newsletters and leaflets Intranet, Website and Database Informed internal and external stakeholders.

32 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 33 Complaints mechanism Current/actual complaints mechanism Desired complaints mechanism Actual achievements

Telephone All complaints received to be handled All complaints received were handled.

e-mail All complaints received to be handled All complaints received were handled.

Letters All complaints received to be handled All complaints received were handled.

Walk-in All complaints received to be handled All complaints received were handled.

Meetings 100% satisfied clients 100% satisfied clients.

Social Media All complaints received to be handled All complaints received were handled.

2.3 ORGANISATIONAL ENVIRONMENT

Organisational Structure Review The Gauteng Department of Roads and Transport embarked on an or- Aligned to the reorganised structure is the reengineering of the business ganisational restructuring process intending to align its Organisational process by 2023 which will expedite the Department’s integration of an Structure to its new five-year strategy. This will enable the Department e-services platform for administrative functions and front-line services to acquire the key competencies and capabilities to firstly, contribute to functions by 2025. the priorities of the National and Provincial Government, secondly, to deliver on its mandate and finally to ensure effective and efficient service COVID-19 Compliant Workplace Readiness and Workforce Re-In- delivery to the people of Gauteng. tegration Solutions The Department remained committed to the recognition that every per- The restructuring process is informed by the Public Service Regulation son has the right to a safe and healthy working environment. COVID-19 2016 as prescribed and the manifesto of the new administration/ gov- required the Department to provide and maintain a COVID-19 working ernment. The restructuring process commenced in the financial year environment which is safe and without risk to health and safety of em- 2019 and is envisaged to be completed by the end of the financial year ployees, clients and visitors. In an endeavour to ensure a healthy and 2020/21. safe working environment, the Department continuously monitored the implementation of Safety, Health, Environment, Risk and Quality (SHERQ) The Department’s restructuring process will focus on the following crit- which is an integrated management system of Occupational Health and ical areas: the Organisational Operational Model complemented by its Safety, Environmental Management, Risk Management and Quality Man- Service Delivery Model to optimise the improvement of operational ef- agement. It was meant to strengthen ownership and accountability, im- fectiveness and efficiencies. The work-study review will inform updated prove transparency, improve measurement of Programme achievement, job profiles and grades which will contribute to a peaceful working space strengthen resource mobilization, improve implementation and enhance between employer and organised labour and respond to the call from the performance. National Government on an efficient and capable public service. This will be completed in the financial year 2021. The Department identified hazards and risks which could adversely affect the health and safety of its employees. Therefore, it implemented control The restructuring advocacy process will be facilitated by a change man- measures in place to mitigate and eliminate identified risks, provided agement plan which will incorporate elements of roadshows, smart plat- information, training on SHERQ management issues and Personal Pro- form communications, departmental engagements with labour and rele- tective Equipment (PPE) to employees. Standard Operating Procedures vant stakeholders to support a smooth transition. The critical elements (SOP’s) were developed to conduct COVID-19 screening, testing and med- of engagements, reorganised structure, service delivery model, business ical surveillance, occupational hygiene surveys and audits. processes will be completed by the end of 2021. Once the approval from the Minister of Public Service on the restructured organisational organogram is received, the filling of identified, critical posts will be undertaken.

34 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 35 2.3.1 Department of Roads and Transport Programme Structure

The Department Programme Structure is defined by National Treasury. The Programme structure encompasses four (4) Programmes together with its respective Sub Programmes. The table below describes the Programme Structure.

Programme Sub-Programme

Administration Office of the MEC

Management of the Department

Corporate Support

Departmental Strategy

Transport Infrastructure Infrastructure Planning

Infrastructure Design

Construction

Maintenance

Programme Support Infrastructure

Transport Operation Public Transport Services

Programme Support Operations

Transport Regulation Transport Administration and Licencing

Operator License and Permits

34 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 35 2.4 KEY POLICY DEVELOPMENTS AND LEGISLATIVE CHANGES

The Department developed the following Acts and Regulations during the year under review, to guide the implementation and regulation of transport in the Province.

Gauteng Transport Authority Act The purpose of the Act is to provide for the establishment of the Gauteng Transport Authority which will facilitate integrated planning and co-or- dination of public transport in the province. The Premier of Gauteng brought the Gauteng Transport Authority Act, 2019 (Act No. 2 of 2019) into operation on the 1 November 2019.

Gauteng Provincial Road Traffic Amendment Act The purpose of the Act is to empower the MEC to prescribe certain requirements for the operators of tow trucks (breakdown vehicles) concerning the towing of other vehicles on public roads. The Premier of Gauteng brought the Gauteng Provincial Road Traffic Amendment Act, 2019 (Act No. 1 of 2019) into operation on the 1 November 2019.

Regulations drafted • Gauteng Regulations Relating to Advertisements on or Visible from Provincial Roads The objective of the Regulations is to define the procedures to be followed in dealing with advertising on or visible from provincial roads. The Department is liaising with various Municipacilities to resolve relevant issues identified between the Province and Municipalities on the draft Regulations.

• Gauteng Provincial Tow Truck Regulations The objective of the Regulations is to regulate the operations of Tow Truck services, currently operating in an unregulated manner. The Department had consultations with the Towing industry on the draft Regulations and is awaiting inputs from the industry.

Regulations reviewed • Regulations on the adjustment of the Motor Vehicle Licence fees In line with the Treasury Regulations and Section 25 of the Gauteng Road Traffic Act, the Motor Vehicles License Fees must be increased annually. The pre-certified Gauteng Provincial Road Traffic Amendment Regulations, 2001 were certified by the State Law Advisor and subsequently approved by the Gauteng Provincial Legislature.

36 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 37 3. STRATEGIC OUTCOME ORIENTED GOALS

The Department has the following Outcome Orientated Goals to drive its strategic vision.

Strategic Outcome Oriented A modern integrated public transport system that provides customer-centric transport services. Goal 1 Goal Statement To provide a public transport system that meets the commuter expectation of accessibility, reliability, safety, affordability and sustainability. Justification To enhance the competitiveness of the Global City Region

Links NDP, PGDS, Gauteng 2055 vision

Sub-outcome Integrated and regulated public transport and freight service

Key Priorities Establishing the Gauteng Transport Authority

• Province-wide integrated ticketing

• Integrated passenger information and communication

• Integration with the commuter rail corridor modernisation project of PRASA

• Restructuring of subsidised road-based public transport

• The corporatisation of the taxi industry

• Access to major freight nodes

• Regulation and enforcement of public transport and freight

Strategic Outcome Oriented Strategic economic transport infrastructure that stimulates socio-economic growth. Goal 2 Goal Statement A sustainable, well maintained, balanced road infrastructure that contributes to increased socio-economic growth and accessibility for communities. Justification To promote economic growth, development and land use

Links Spatial Development plan, Provincial Infrastructure Master Plan, Municipal IDPs

Sub-outcomes Optimum utilisation of existing and new transport infrastructure

Key Priorities • Travel demand management, less congestion and shorter travel time

• Non-motorised transport providing pedestrian paths and cycleways

• Continued provincial-wide mobility

• Effective management of existing transport infrastructure

• Intelligent transport system – use of technology to enhance travel management

36 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 37 Strategic Outcome Oriented A modern, accountable and development-oriented Department. Goal 3 Goal Statement A customer-centric organisation that is service-oriented, accountable to stakeholders, compliant with regulatory frameworks and competent socially conscious human capital Justification An effective governance and management environment that ensures accountability to stakeholders

Links PFMA, PSA, BCA, SDA, LRA, PAJA, PAIA, Chapter 9 Institutions

Sub-outcome An organisation complying with all its financial, administrative and regulatory responsibilities

Key Priorities • Institutionalise good governance systems

• Enhance the performance management systems to deliver effective services

• Automation of business process towards efficiencies

• Establishment of a Departmental training and developmental centre (Zwartkop)

• Develop a knowledge portal that ensures the sustainability of institutional memory

• Establish a comprehensive human resource management system

• Enhance the contract management system

• Creating an external and internal regulatory environment

38 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 39 4. PERFORMANCE INFORMATION BY PROGRAMME

This section outlines the progress by the Department in the achievement STRATEGIC OBJECTIVES, PERFORMANCE INDICATORS, of the Strategic Objectives as outlined in the Annual Performance Plan PLANNED TARGETS AND ACTUAL ACHIEVEMENTS 2019/20. Strategic Objective 1: 4.1 Programme 1: Administration To achieve good governance and accountability in the management of state resources. Purpose The purpose of the Programme is to conduct the overall management To demonstrate good stewardship of the resources entrusted to the De- and administrative support function to the Office of the MEC and the partment, the following activities were executed: Department. • Payment statistics for the past five years Objectives of the Programme The Department’s endeavour to ensure absolute compliance with To provide advisory, secretarial, administrative and office support service laws and to build public confidence has ensured a continuous im- to the MEC, and to render strategic support to the Department in the ar- provement in the payment cycle over the past five financial years. eas of finance, human resources, procurement, information and commu- This is critical in ensuring efficiency in the delivery of projects and nication systems and policy development. It comprises of the following sustainability of SMMEs in line with the Transformation Moderni- Sub Programmes: sation and Re-industrialisation (TMR) strategy of the Province. In the financial year 2019/20, the Department paid 99% of authentic List of Sub Programmes claims within the prescribed 30 days’ period. This is an indication • Office of the MEC of the Department’s commitment to fast-track service delivery to • Management of the Department the citizens of Gauteng. • Corporate Support • Departmental Strategy

Below is a graphical presentation and analysis of payments made within 30 days and payments made outside 30 days:

Payment Statistics 120% 99% 99% 99% 99% 99% 100%

80%

60%

40%

20% 1% 1% 1% 1% 1% 0% 2015/16 2016/17 2017/18 2018/19 2019/20 Financial Years

Payments made within 30 Days Payments made after 30 Days

38 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 39 Financial Years 2015/16 2016/17 2017/18 2018/19 2019/20 Payments made within 30 Days 99% 99% 99% 99% 99%

Payments made after 30 Days 1% 1% 1% 1% 1%

• Open tender The following tenders were awarded in line with the open tender policy of the provincial Government:

Tender Number Description

DRT30/11/2017 Construction Phase: P156/3: Rehabilitation of Road P156/3 from P155/1 to D2563 (Sedibeng) (10 months)

DRT03/05/2018 P241-1: Rehabilitation from D405 (R554) Lenasia to Swartkoppies Ave Alberton

DRT07/06/2018 The provision of supervision and monitoring services for public passenger transport contracts

DRT15/07/2019 The review and realignment of the organisational structure for the Department of Roads and Transport

40 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 41 40 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

STRATEGIC OBJECTIVES

Programme Name: Administration

Strategic objectives indicator Actual Actual Actual Planned Target Actual Deviation from Comment on deviations Achievement Achievement Achievement 2019/20 Achievement planned target 2016/17 2017/18 2018/19 2019/20 to Actual Achievement for 2019/20

Finance

Provincial Indicators

Clean audit report 0 0 0 1 clean audit 0 The Department received an unqualified audit opinion due report 2018/19. to the extension of bus subsidy contracts which resulted in non-compliance.

*Material under-spending of Tolera- 4% un- 5% under- Tolerable Actual 5% The underspending as a result of high underspending GAUTENG PROVINCIAL GOVERNMENT | the budget ble under der-spending spending under-expen- under-expen- incurred within the bus subsidies and the under-spending expenditure (R292, 407. (R359, 078, diture of 3% diture of 8% was due to the non-operational bus contracts (Sedibeng, of 1% (R111, 000) of the 248.41) (R234, 000, (R637, 694, Boksburg and North-West Star) operations that were 350, 000.00) of total allocated spending of 600.00) of 343.24) of drastically reduced during the financial year due to the allocated budget of R7, the allocated the adjusted the adjusted operator’s reduced bus capacity, as well as the DNOs that budget. 082 340, 000 budget to date. appropriation. appropriation. were levied against all operators.

* The planned target was adjusted to 3% R234,000,600.00 of the adjusted appropriation. The final figures reported above are based on the adjusted appropriation. DEPARTMENT OFROADSANDTRANSPORT 41 • Strategy to overcome areas of underperformance

Indicator Proposed Intervention

Clean audit report. The Department is in the process of introducing new subsidised bus contracts to address efficiencies in the Public Transport Operations.

Material under-spending of the budget. The total remaining funds (R637,694,343.24) will be surrendered to the Provincial Revenue Fund (PRF).

• Changes to planned targets None

Strategic Objective 2: To capacitate the organisation with the required competencies. Employee and Organisational Wellness To enable the Department to deliver on its mandate, the following • Occupational Health and Safety (OHS) activities were executed: The Department appointed some employees as Safety, Health and Environment (SHE) representatives in line with OHS requirements. Human Capital Development Eighty-two (82) employees were trained in Hazard Identification To develop and capacitate departmental employees with identified skills Risk Assessment (HIRA), Accident investigation, Fire fighting, First in various training Programmes, 1, 393 employees were trained. The vari- Aid, Emergency preparedness, Occupational Health and Safety ous f training conducted related to occupational, health and safety, ethics training for Supervisors, ISO 9001: 2015 Quality Management management, transport, roads and administration capacity building. System, ISO 14001: 2015 Environmental Management System and ISO 45OO1 Occupational Health and Safety. Revised Gauteng Provincial Government Policy on the Perfor- mance Management and Development Systems (PMDS) Facilities Management The Gauteng Provincial Government approved the new policy on the Per- • Maintenance/ Renovation of Departmental buildings formance Management and Development System (PMDS) for Employees To ensure compliance to OHS (Occupational Health and Safety) on salary level 1-12 on the 8 March 2019 and requested Departments to and building legislation, the Department is continuing with the ensure the implementation of the policy with effect from 1 April 2019. maintenance work at Departmental Regional Offices, TOLABs and DLTCs. The maintenance included the electrical, plumbing, and To ensure the implementation of the policy the Department, conducted refurbishment of the buildings. To restore the facilities to satis- awareness sessions for GDRT and g-Fleet employees on levels 1-12 in- factory conditions, the Department conducted maintenance in the cludIng coordinators. To strengthen the awareness sessions and assist following regional offices: with the understanding and application of the new policy, formal training by the National School of Government was conducted. The formal » Heidelberg Regional Office; training was aimed at clarifying the roles and responsibility within the » Vereeniging Regional Office; Department with the focus on the following: » Krugersdorp Regional Office; • Improve individual performance; » Kliptown DLTC; • Promote accountability; » Kagiso DLTC • Ensure transparency; » Mabopane DLTC; • Emphasize and support developmental areas; and » Temba DLTC; • Identify performance gaps. » Tshwane TOLAB » Benoni Regional Office; and The new PMDS policy was implemented with the new procedures and » Bronkhorstspruit Regional Office. documentation across all employee levels.

42 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 43 • Relocation of offices to new premises The following regional offices were relocated to improve service delivery:

» Randfontein TOLAB was moved to Kagiso DLTC; and » 11 Diagonal Street (TOLAB) to 45 Commissioner Street Building.

User Asset Management Plan The User Asset Management Plan (U-AMP) is developed in compliance with the Government Immovable Asset Management Act (GIAMA) 2007. U-AMP ensures the effective, efficient immovable asset management planning and coordination of the user immovable assets with the service delivery objectives of the Department. The U-AMP 2020/21 final draft was completed and submitted to Gauteng Provincial Treasury and Gauteng Department of Infrastructure Development (GDID).

Preparation of 2021/22 U-AMP has commenced with information gath- ering, analysis and compilation in consultation with the finalised reports from the consultants and GDID.

42 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 43 44 STRATEGIC OBJECTIVES

Programme Name: Administration GAUTENG PROVINCIAL GOVERNMENT | Strategic objectives Actual Achievement Actual Achievement Actual Achievement Planned Target 2019/20 Actual Achievement Deviation from Comment on devi- indicator 2016/17 2017/18 2018/19 2019/20 planned target to ations Actual Achievement for 2019/20

Corporate Services

Provincial Indicators

DEPARTMENT OFROADSANDTRANSPORT Approved Departmental Approved Departmental Approved Departmental Approved HRD Approved Departmental Approved Departmental - - HRD Implementation HRD Implementation HRD Implementation Implementation Plan HRD Implementation HRD Implementation Plan submitted to DPSA Plan submitted to DPSA. Plan to DPSA Annually. submitted to DPSA. Plan submitted to DPSA Plan submitted to DPSA Annually. Annually. Annually

Job Access Strategic Job Access Strategic Approved Job Access 0 Job Access Strategic Job Access Strategic - - Framework Implemen- Framework Implemen- Strategic Framework Framework Implemen- Framework Implemen- tation Plan submitted to tation Plan submitted to Implementation Plan tation Plan submitted to tation Plan submitted to DPSA Annually. DPSA. submitted to DPSA DPSA Annually. DPSA Annually. Annually.

GEYODI Equality Gender Equality Approved Gender Equal- 0 Gender Equality Strategic Gender Equality Strategic - - Strategic Framework Strategic Framework ity Strategic Framework Framework Implemen- Framework Implemen- Implementation Plan Implementation Plan Implementation Plan tation Plan submitted to tation Plan submitted to submitted to DPSA submitted to DPSA. submitted to DPSA DPSA Annually. DPSA Annually. Annually. Annually.

Approved Annual Human Approved Annual Human Approved Annual Human Approved Human Approved Annual Human Approved Annual Human - - Resource Planning Resource Planning Resource Planning Resources Plan and Im- Resource Planning Resource Planning Implementation Report Implementation Report Implementation Report plementation report were Implementation Report Implementation Report submitted to DPSA submitted to DPSA. submitted to DPSA submitted to DPSA. submitted to DPSA submitted to DPSA Annually. Annually. Annually. Annually. GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 45 44 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

PERFORMANCE INDICATORS

Programme / Sub-Programme: Administration

Performance Indicator Actual Actual Actual Planned Tar- Actual Deviation Comment on deviations Achievement Achievement Achievement get 2019/20 Achievement from planned 2016/17 2017/18 2018/19 2019/20 target to Actual Achievement for 2019/20

Corporate Support

Provincial Indicators

Number of employees in designated categories that 804 958 2, 552 800 1, 393 + 593 The Department in collaboration with National School have undergone compulsory training Programme. of Government (NSG) made an undertaking to facilitate additional training session s for interns focusing on Government systems and processes. GAUTENG PROVINCIAL GOVERNMENT |

Number of interns and learners 95 95 121 50 92 + 42 Additional interns particularly from TVET colleges were enrolled in the Department’s internship programme in response to government youth development agenda. DEPARTMENT OFROADSANDTRANSPORT 45 • Strategy to overcome areas of underperformance

Indicator Proposed Intervention

- -

• Changes to planned targets None

Strategic Objective 3: To achieve an 80% Customer satisfaction level by 2019 To transform and modernise the Department, The following initiatives To promote and create public awareness of departmental projects to the were executed regarding Information Communication Technology (ICT): communities, the Department has initiated the following projects:

• Modernization and Digitisation of Information and Commu- • Integrated events management Programme nication Technology (ICT) To promote the Department and create awareness of service The Department is utilising ICT as a catalyst for the delivery delivery milestones achieved, the following public awareness and of government services as derived from the DPSA’s Corporate media events were executed; Governance ICT Policy Framework. A platform for accessing online government services to employees and citizens has been created • Events and the landscape highlighted transparency in the Departmental » N14 Site Inspection, tendering processes. In the financial year 2019/20, ICT focused on » Kagiso DLTC official opening, the introduction of e-Submission across the Department, digitisa- » R28 Ribbon Cutting, tion of documents, automation of RLS01, the Queue Management » Tambo Springs Freight and Logistics Hub launch, System (QMS) and Short Messaging System (SMS) for frontline » Mandela Day Campaign, services. The following automation projects are outlined below. » Taxi Industry Summit, » Road Rehabilitation projects in Sedibeng District • Electronic Document and Records Management (e-DRMS) Municipality, To promote a paperless environment, the Department has priori- » Mamelodi Sod-turning, tised the automation of the Electronic Document and Records Man- » October Transport Month Campaign, agement System for the financial year 2019/20. A total number of » Consultation meeting with the Sedibeng district Taxi 85 processes were developed, tested and completed. The system Industry - Taxido Intermodal Facility Architectural Designs, is fully functional and accessible on the “live” environment. » Road Safety Law enforcement activations (Grasmere Plaza; N4 Plaza; Pumlani Plaza; N12 Interchange), • Automation of RLS01, » Back to School Campaign in Ekurhuleni, and The RLS01 process was mapped and the development was » Monitoring activities of adherence to preventive mea- completed. The system will be operational in the financial year sures to curb the spread of COVID-19 in public transport. 2020/21. • Exhibitions • Short Messaging Services (SMS) » Service Delivery Blitz Activation in Gugulethu (Springs), The short messaging services through bulk sending SMS func- » Rand Easter Show Expo (Nasrec), tionality were successfully developed and deployed in Maponya, » Lesedi Youth Expo in Ratanda, Xavier, Kliptown, Mabopane, Randfontein and Temba Driver, » Registration Authority (RA) activations (Mabopane DLTC; Learner Testing Centers (DLTCs). This service allows customers Krugersdorp DLTC; Vanderbijlpark DLTC; Langlaagte DLTC; to receive SMS informing them of the renewal of their Driver and Wadeville DLTC; Malboro DLTC), Motor vehicle licences

46 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 47 » National Science Week, » 3rd Annual Entrepreneurial Summit and Expo, » Bikers and Cyclist Workshop Exhibitions, and » Gauteng October Transport Month Smart Mobility Expo

• Seminars » Taxi Industry Summits » Built Industry Innovation Seminar, » Public Transport Knowledge Seminar Workshop, » Freight Seminar, and » Road Safety Seminar. » Bikers/Cyclist Workshop/Seminar

Media Liason The following media liaison activities were undertaken by the Department during the financial year under review:

Media Activities

Stakeholder Engagements 44

Speeches 75

Media Enquiries 24

Interviews 276

Media Statements / Key Messages 63

Media Advisories 48

0 50 100 150 200 250 300

Social media has assisted the Department to contribute to the building To ensure robust public relations, the Department undertook the follow- of the Gauteng Provincial Government’s brand, it enables a platform of ing initiatives: sharing of information with regards to services and opportunities. The platform allows the departmental clients to share, retweet and re-pin Stakeholder Management content. • Social facilitation Social facilitation is the process of consulting or communicating The benefits of social media during the State of Disaster National with all the affected stakeholders when the Department imple- Lockdown included the following: ments any infrastructure projects. The process ensures that proper • Receive customer feedback; consultation is conducted with the affected stakeholders and • Increase reach and respond to enquiries; facilitates the recruitment process of community beneficiaries by • Reduce advertising costs; and ensuring equal access to skills development, job and economic • Develop and enhance GPG’s brand. opportunities. This ensures the delivery of infrastructure projects with minimum disruptions and strengthens democratic and good governance in all our infrastructural delivery processes.

46 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 47 The Department conducted social facilitation with the local communities for the following projects: • N14 phase, • P39/1, • K46, • K54, and • K69.

Road Safety Campaign The Department conducted road safety campaigns during 2019 festive season at inter-provincial corridors. The launch was held at Grasmere Toll Plaza, City of Johannesburg, on the 13 December 2019. The campaign was in partnership with the following stakeholders: • Gauteng Department of Community Safety, • Road Traffic Management Corporation, • Municipalities, and • Taxi Industry.

The objectives of the Road Safety Campaigns amongst others included: • Heightening awareness about the rules of the road to both road users, motorists and pedestrians alike, • Upholding the rule of law by changing both driver and pedestrian behaviour on our roads, and • Exercise a zero-tolerance on negligent and reckless driving.

48 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 49 48 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

Programme Name: Administration Performance Actual Achieve- Actual Achieve- Actual Achieve- Planned Target Actual Achievement 2019/20 Deviation Comment on deviations Indicator ment 2016/17 ment 2017/18 ment 2018/19 2019/20 from planned target to Actual Achievement for 2019/20

Corporate Services Provincial Indicators Fully automated Mapping and System Mapping, System 25 e-DRMS scanning Mapping, System e-DRMS business process developed - - identified business Design, Systems De- Design, Systems processes developed Design, Systems De- and completed. A total number of 85 processes and records velopment completed Development 1 (45%) velopment completed processes have been tested and are management by 2019 (15%) 3 processes viz. completed. 1. Electronic Docu- in the live environment. Queue Management 1. Electronic Docu- ment and Records System, Document ment and Records Management System tracking for HR and Management Phase 1. (Phase 3) Imple- Short Messaging 2.Wayleave (5%) mented System.

Test and go live for 2. Queue Manage- Three (3) processes mapped and 15% Test and go live not conducted due queue management ment System (Phase signed. to the following system technical (1 site completed 3) implemented in Screen Designs completed and challenges: -Kagiso DLTC). three (3) sites. signed.

GAUTENG PROVINCIAL GOVERNMENT | Development for queue Manage- • System time closure, ment (3 sites) has been completed: • Service counter login, namely Kliptown, Mabopane MVRA • Availability of administrative and Tshwane TOLAB. screen, and • Delays in the procurement of ICT equipment.

- 3. e-Submission Mapping for e-Submission com- 20%

DEPARTMENT OFROADSANDTRANSPORT automated pleted. Design for e-Submission completed. Development for e-Submission completed.

Developing Short 4. Short Messaging Mapping for Short Messaging 20% Test and Go live was not conduct- Messaging Service System (phase 2) im- System in 6 Sites. ed due to the early lockdown of completed on four plemented in 6 sites Designs for Short Messaging System the service provider (Vodacom) sites - (gFleeT: VIP for 6 Sites completed. before the National lockdown. and Pool, Permanent Development of the short messaging Section Customer system for 6 sites completed; Management Ser- Namely Maponya, Xavier, Kliptown, vices; and Revenue Mabopane, Randfontein and Temba. and e-Natis.) 49 • Strategy to overcome areas of underperformance

Indicator Proposed Intervention Fully automated identified business processes and records management by 2019. • Systems challenges – The Department will address system challenges encountered; conduct the test and go live in the financial year 2020/21, and

• Queue Management System (Phase 3) implemented in three (3) sites, • Unavailability of the service provider – The Department will request the service • e-Submission automated, and provider to finalise the test and go live during the 1st quarter of the financial year • Short Messaging System (Phase 2) implemented in six (6) sites, 2020/21.

• Changes to planned targets None

Linking performance with budgets

Programme expenditure

Administration 2019/2020 2018/2019

Final Actual (Over)/Under Final Actual (Over)/Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000

Office of the MEC 14,068 13,348 720 9,690 7,755 1,935

Management of the De- 35,532 29,915 5,617 18,509 15,830 2,679 partment Corporate Support 330,131 287,814 42,317 300,620 259,247 41,373

Departmental Strategy 3,548 3,020 528 3,335 2,904 431

Total 383,279 334,097 49,182 332,154 285,736 46,418

The Sub-Programmes within this Programme are administrative; therefore, the allocations are funded from the equitable share portion of the departmental allocation. The underspending was as a result of Administration, SMS and other Occupational Specific Dispensation (OSD) posts that need to be filled and therefore, spending is negatively affected. Furthermore, cost containment measures were also applied to reduce spending pattern within operation expenditure.

50 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 51 4.2 Programme 2: Transport Infrastructure Route Determinations Route Determination focus on refining and amending routes for the Prov- Purpose ince to ensure that they are aligned to the Gauteng Spatial Development The purpose of the Programme is to provide a balanced equitable road Framework. The Department has identified 28 routes currently in process network in the Province by promoting accessibility that is sustainable, in- and 29 routes over the Medium-Term Expenditure Framework (MTEF) tegrated and environmentally sensitive, which support economic growth which will be amended to include support for road freight hubs. These and social empowerment. routes will provide future support to land use development, especially the establishment of mega settlements, namely; the Aerotropolis and The Programme is aimed at determining the needs for the development of Freight Hubs. infrastructure, implementing maintenance and construction Programmes and providing access to communities to unlock economic potential, as The progress for the following projects are outlined below: well as promoting community development. The Programme consists of • Project A (K14 at K177; K203 at K177; K16 between K169 and four Sub Programmes namely: PWV19; PWV6 at N4) is at 100%, • Projects B (K106 at K175; K109 at K68; K163 between N17 and List of Sub Programmes K136; K175 with quarter link to K173 & K179) is at 95%, • Infrastructure Planning • Project C (K156 Extension Westwards; K176 Extension Westwards; • Infrastructure Design K178 Extension Westwards and K213 Extension Southwards) is at • Construction 100%, • Maintenance • Project D (K9 between K156 and K11; PWV 16 between K211 and K5; PWV8 between K13 and PWV1) is at 94%, STRATEGIC OBJECTIVES, PERFORMANCE INDICATORS, • Project E (K17 between K24 and K26; K24, West of K76; K26 be- PLANNED TARGETS AND ACTUAL ACHIEVEMENTS tween K76 and K17, K76 at and North-West of K197) is at 95%, • Project F (K96 between K197 and K76; K102 between K140 and Strategic Objective 1: PWV1); K140 extension West of K102; (K211 between P89/1 and To integrate province-wide transport sector planning and K228) is at 100%, multi-modalism that supports decisive spatial transformation. • Project G (K228, West of K76; PWV12A with the extension West of To promote the Transport planning of current and future transport infra- K5 to the provincial border) is at 89% and structure and systems towards an integrated and seamless transport net- • Project H (K83 extension Eastwards; K77 realignment of K77) is at work, the Department has executed the following projects: 100%.

Sub-Programme: Infrastructure Planning Integrated Transport Service Centre Detailed Design for Gauteng Province Gauteng Household Travel Survey (GHTS) The Department embarked on a project to develop a Master Plan for In- The 2019 Gauteng Household Travel Survey (GHTS) is the third in the se- tegrated Transport Service Centres (DLTC’s, TOLABS, and VTS’s) in the ries of provincial surveys commissioned by the Department. It serves as 2017/18 financial year to address challenges in the planning, construc- one of the mechanisms to inform transport planning initiatives related to tion and management of these transport service centres. improving transport infrastructure, promoting mobility and public transport access to enhance participation of Gauteng residents. The survey Phase 1 of the project generated a Master Plan for Integrated Transport is an update of the previous 2014 GHTS which was coordinated by the Service Centres (ITSCs). ITSC includes the facilities that combine one Province and entailed consolidation of individual survey datasets from or more of the following functions: Driver Licencing and Testing Centres Metropolitans and District Municipalities. (DLTCs), Motor Vehicle Registration Authorities (MVRAs), Transport Op- erating Licencing Administrative Boards (TOLABs) and Vehicle Testing A total of 83% of completion was achieved during the execution of the Stations (VTS). The Master Plan recommended designs and functional field surveys. The project experienced delays in accessing gated house- principles for the ITSCs. holds in the Johannesburg region which resulted in 70% of the sample coverage for Johannesburg. The remaining field surveys could not pro- A Phase 2 report was completed indicating the findings and recommen- ceed due to the COVID-19 lockdown. The Draft Household Travel Survey dations of the feasibility study in support of the design and establish- Report was completed. ment of a comprehensive Integrated Transport Customer Service Centre.

50 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 51 Phase 3 of the project which commenced in the financial year 2019/20 GLI-X- Indicator Implementation Pilot and project entails carrying out detailed designs at the pilot site which is inclusive The Gauteng Province, its Cities, Transnet, the National Department of of the architectural concept design. A prototype 3D model architectural Transport, Academia, other government departments and the private design of the facility has been developed for the allocated site. sector collaboratively constructed the Freight Green Logistics indicator (GLI-X) system which seeks to improve the movement of freight in the Integrated Transport Plan (ITP) Support/ Evaluation Gauteng Province. This indicator system forms part of a broader set of An Integrated Transport Plan (ITP) is a legal requirement for all planning projects which are stipulated in the Joint Declaration of Intent which was authorities as stipulated in Chapter 4, Section 36 of the National Land signed by the Gauteng Provincial Government and the German Federal Transport Act (NLTA). The ITP is the primary transport planning document Ministry for the Environment, Nature Conservation, Building and Nuclear that outlines all the transport projects that are required to accomplish Safety in February 2016 to improve freight mobility in the Province. the mandate of a Municipality and it also forms an integral component of the Integrated Development Plan (IDP). The objective of implementing an The Department continues with its cooperation with the Federal Ministry Integrated Transport Plan is to create a balance between spatial land-use for the Environment, Nature Conservation and Nuclear Safety, GESI and decisions and transportation planning. NEXUS on the Green Logistics Indicator System (GLI-X) Project. The GLI-X Team continued to engage with the KwaZulu-Natal Department of Trans- Every 5 years, the Metropolitan and District Municipalities are obliged to port, the eThekwini Transport Authority and Transnet on exploring the ap- prepare and submit Comprehensive Integrated Transport Plans (CITP) for plication of GLI-X. The engagement was aimed at formalising a working Metros and District Integrated Transport Plans (DITP). The Department agreement for the execution of a feasibility study on digital applications assisted the West Rand and Sedibeng District Municipalities with the for the optimisation of freight and logistics. compilation of their DITPs. Priorities Freight Hubs The West Rand District Municipality DITP is complete and a closeout re- • Tambo Springs port has been submitted. The Sedibeng District Municipality’s Draft DITP In support of the Tambo Springs Logistics Gateway, the Department and LITPs are complete and to be presented to the Section 80 Committee is set to invest more than R6.5 billion rand in road infrastructure and the Executive Council for approval. to be constructed in the City of Ekurhuleni over the next 5 years. The planned road network linking the R 2.5 billion Tambo Springs Feasibility for BRT Integration between Ekurhuleni and City of Freight and Logistics Hub directly to the N3 and other locations Johannesburg via a new link road and interchange will commence construction The recent study on “Conceptual Investigation into the Potential Scope in the financial year 2021/22. Thus, a study on the surrounding for BRT Integration Across Municipalities in Gauteng” commissioned by road network was undertaken which indicated the existing and the Gauteng Department of Roads and Transport indicates that physical future roads which require re-alignment, design, Environmental integration is feasible between Ekurhuleni Metro and City of Johannes- Impact Assessments (EIA), Water Use Licence Application (WULA) burg (Tembisa – Ivory Park – Vosloorus – Johannesburg), Ekurhuleni’s and widening and construction at different phases of the logistics BRT service and Johannesburg’s planned North East Quadrant provide an gateway development. The Designs for K148/N3 interchange immediate opportunity for the Province to facilitate a mutually beneficial which is the primary link to Tambo Springs Logistics Gateway were strategic plan for service integration between the two cities. The primary completed. The tender for construction was advertised. objective of the project was to develop a preliminary investigation to establish the viability of an inter-municipal BRT service between Ekurhuleni and Johannesburg. Sub-Programme: Infrastructure Design

A viability assessment of a BRT integration between the two cities was To ensure safety standards are maintained by improving safety and sup- completed. A Draft Service Design (physical and operational integration, port strategic economic development, the Department has initiated the institutional integration and funding options and intelligent transport following road designs: systems integration) has been finalised. Consultations with the Mu- nicipalities (Ekurhuleni and Johannesburg) and agencies (SANRAL and Road Designs completed in the financial year 2019/20 Gautrain Management Agency) have commenced. The Department has completed the following design which commenced in the financial year 2016/17 and completed in the financial year 2019/20.

52 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 53 • K122 (Eldorado Park) from Klip Valley Road (Walter Sisulu Square) to P1/1 (R82) The K122 is located between the Golden Highway (P73/1) and R82 (K57). It also forms an important link between Walter Sisulu Square, Eldorado Park, Naturena and Eikenhof areas. The road will be a single carriageway which will reduce traffic congestions and travel time to the major roads around the area. The designs for K122 were completed.

• K16 between Watloo and Mamelodi K16 is an East-West route between Watloo and Mamelodi in Tshwane. This road supports the proposed Pyramid Freight and Logistics Hub, as well as generating economic development and socio-economic inclusion in the region. The road links Eersterus and Watloo in the Pretoria CBD. K16 was designed as a dual carriageway with provision for walkways, cycle lanes and public transport. The designs for K16 were completed.

52 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 53 54 STRATEGIC OBJECTIVES

Programme Name: Transport Infrastructure Strategic objectives indicator Actual Actual Actual Planned Tar- Actual Deviation Comment on deviations GAUTENG PROVINCIAL GOVERNMENT | Achievement Achievement Achievement get 2019/20 Achievement from planned 2016/17 2017/18 2018/19 2019/20 target to Actual Achievement for 2019/20

Sub Programme: Infrastructure Planning

Provincial Indicator DEPARTMENT OFROADSANDTRANSPORT Gauteng Household Travel Survey - - - 1 Gauteng 0 1 The project experienced delays in accessing gated households in the completed Household Johannesburg region which resulted in 70% of the sample coverage for Travel survey Johannesburg. The remaining field surveys could not proceed due to the completed. COVID-19 lockdown. Therefore, the Draft Household Travel Survey Report was completed. GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 55 54 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

PERFORMANCE INDICATORS

Programme / Sub-Programme: Transport Infrastructure Performance Indicator Actual Actual Achievement Actual Achievement Planned Tar- Actual Deviation Comment on deviations Achievement 2017/18 2018/19 get 2019/20 Achievement from planned 2016/17 2019/20 target to Actual Achievement for 2019/20

Sub Programme: Design

Provincial Indicator

Number of designs completed 10 9 0 11 0 11 The designs could not be completed due Designs Designs to delays in the appointment of the probity Completed Completed auditors and probity audit processes.

Sub Programme: Infrastructure Planning

GAUTENG PROVINCIAL GOVERNMENT | Master Plan for Transport Services - Master Plan for Integrated Feasibility study on the Design of the Design of the - - Centres in Gauteng Province Transport Customer Services establishment of an integrated TSC architec- TSC architec- completed Centres in Gauteng completed. Transport Services Centre tural prototype tural prototype (DLTC, TOLAB) at a select- completed. completed. ed priority area has been completed.

Number of kilometres of surfaced - 4,408km 0 4,571km 0 4,571km The assessment of surfaced and gravel roads visually assessed as per the roads were not completed as a result applicable TMH manual of the cancellation of the tender due to non-responsiveness of bidders.

DEPARTMENT OFROADSANDTRANSPORT Number of kilometres of gravelled - 1,377km 0 1,359km 0 1,359km road visually assessed as per the TMH manual 55 • Strategy To Overcome Areas of Underperformance

Indicator Proposed Intervention Gauteng Household Travel survey completed. The Department will finalise the Gauteng Household Travel Survey Report after consultation with Munici- palities in the financial year 2020/21. Several designs completed. The Department is focusing on decentralisation of the probity audit function with Provincial Treasury to mitigate challenges experienced. Number of kilometres of surfaced roads visually assessed as per the applicable TMH manual. The tender was advertised on 7 February 2020 and the closed on the 10 March 2020. Number of kilometres of gravelled roads visually assessed as per the TMH manual.

• Changes to planned targets None

Strategic Objective 2: To provide a modernised road infrastructure that promotes socio-economic development. To provide modernised road infrastructure and improve safety in the road network, the Department has executed the following:

Sub-Programme: Construction

Surfaced Roads Upgraded The Department has commenced with the implementation of the number of multi-year road upgrade projects:

Multiyear projects completing in financial year completing 2021/22 Road Description Corridor Progress

K54: Mamelodi (Tsamaya Road) to R104 Pretoria Bronk- Northern corridor The project is at 72% complete. horstspruit Road.

56 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 57 Multiyear projects completing in financial year completing 2022/23 Road Description Corridor Progress Upgrading of Road K148: Intersection with N3. Eastern corridor The project will be re-advertised in the financial year 2020/21. K69 (Upgrading and doubling of Hans Strijdom (Solomon Mah- Northern corridor The project is at 21% complete. langu) from the N4 to Mamelodi to K54). Vaal River City Interchange. Southern corridor Tender advert closed on the 13th of December 2019 and is at the evaluation stage. K46 (P79 / 1): Upgrading from a single to a dual carriageway of Central corridor The project was re-advertised in February 2020 and Road K46 (P79 / 1) William Nicol from PWV5 to Diepsloot /N14 closed 27 March 2020. Phase 2. K31 access to Green Gate Development: Reconstruction and upgrade of the M5 Beyers Naude Road. The project will be re-advertised in the financial year 2020/21. Upgrading of K73 between Woodmead Drive and Allandale Central and Eastern corridors Road (D58) Mushroom farm.

Multiyear projects completing in the financial years 2023-2025 Road Description Corridor Progress K60 Waterfall City: Construction of new link between R55 Eastern corridor The project will be advertised in the financial year Woodmead Drive and Allandale Road. 2020/21. K15 Phase 3: Upgrading of K15 Adcock Road between K102 Central corridor The tender was not awarded due to an internal Main Street Dobsonville to Wild Chestnut Street Protea Glen. investigation.

Upgrade of K101 from D795 Olifantsfontein to N1 Brakfontein. Northern corridor

The project will be advertised in the financial year K14 between Cullinan and Rayton Road (D483) 2020/21. R82 phase 3 (between D1073 (Walkerville) and (De Deur). Southern corridor

56 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 57 58 PERFORMANCE INDICATORS

Programme / Sub-Programme: Transport Infrastructure

GAUTENG PROVINCIAL GOVERNMENT | Performance Indicator Actual Actual Actual Planned Actual Deviation from Comment on deviations Achieve- Achieve- Achieve- Target Achieve- planned target to ment ment ment 2019/20 ment Actual Achieve- 2016/17 2017/18 2018/19 2019/20 ment for 2019/20

SUB PROGRAMME: CONSTRUCTION

Job creation DEPARTMENT OFROADSANDTRANSPORT National Indicator

Number of construction jobs created through 191 207 76 250 62 188 1. Delays in the appointment of probity auditors for the implementation of EPWP principles specifications, tender adverts and evaluation of tenders for infrastructure projects.

2. Tender advertisement cancellation for the following projects: • K46 - due to bidders not complying to PPPFA regulation stipulated in the tender advertisement,

• K31 -due to the differences in the advertisement published and the advertisement in the tender document,

3. Late approval of tender advertisement for:

• K101, K174, K148 - due to delays in the probity audit processes, and • R82, K73 - late appointment of probity auditors. GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 59 • Strategy To Overcome Areas of Underperformance

Indicator Proposed Intervention

Number of construction and NMT jobs The outstanding jobs will be created in the financial year 2020/21 as per the awarding of the projects indicated below: created through the implementation of EPWP principles. • K46 – The tender was re-advertised and the project will be awarded in the financial year 2020/21,

• K31 – The tender will be re-advertised in the financial year 2020/21, and

• K101, R82 and K73 - The projects will be advertised in the financial year 2020/21, and

• K174 and K148 - The projects were advertised and the bid evaluation process has commenced. The projects are anticipated to be awarded in the financial year 2020/21.

• Changes to planned targets None

Strategic Objective 3: To preserve the status of the existing road to its original state To maintain and improve safety in the road network, the Department has executed the following projects:

Sub-Programme: Maintenance

Surfaced Roads Upgraded The Department has commenced with the implementation of the number Hotel. The remedial work is anticipated to be completed in the financial of multi-year road upgrade projects: year 2020/21.

Provincial Road Maintenance Grant (PRMG) expenditure Periodic Road Maintenance The Department was allocated R 767, 506 million to execute the Pro- Roads Maintenance unit was supported by the material term contracts vincial Roads Maintenance Programme (PRMG) in the financial year with the provision of the following activities: supply of roads signs, the 2019/20. The annual PRMG expenditure totalled R 767, 355 million supply of diluted emulsions, the supply of bitumen products, the supply which equates to 99,98%. Various functions and activities performed of concrete material, the supply of guard rails, vegetation, herbicides during the financial year include gravel roads maintenance, rehabilita- control, manholes supply and fencing. tion, pothole patching, resealing, roads markings, sinkholes repairs, routine road maintenance. Multi-year projects (2019 – 2022)

Routine and Periodic Assessment of the Provincial Road Network Completing in 2019/20 The Department resealed 132, 507.72m², re-gravelled 78.57kms of gravel roads, patched 85, 552.92m² of potholes and bladed 1, 994.56kms of Central Corridor gravel roads. Streetlights and drainage structures were repaired, as well • P158/2 (N14) Phase 2: Rehabilitation of P158 (N14) from Brak- as grass cutting and tree felling across the Province. fontein to Diepsloot. The project entailed the rehabilitation of 20.7kms of P158/2 (N14). P158/2 serves as a transport corridor Routine Maintenance between the City of Tshwane, the Northern suburbs of Johan- The Provincial network comprises of 5, 638.54kms of roads (4, nesburg and Krugersdorp. The road commences in Brakfontein 248.44kms surfaced and 1, 389.10kms gravel roads), 2, 938kms main- Interchange to Diepsloot which forms part of the Central corridor. tained by outsourced routine maintenance and 2, 700kms a maintained The implementation of the project has improved the road life cycle by the in-house departmental team. The Department is currently busy by a further 15 years, created job opportunities, provided skills with the rehabilitation of the sinkholes of P6/2 (Snake road) R23 next to training and development for the community and uplifted the small N12 Snake road interchange in Benoni and P36/1 Delmas/ Pretoria road emerging contractors on the project. The rehabilitation of P158/2 (R50) next to Bapsfontein as well as (M57) P122/1 next to Saint Georges was completed.

58 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 59 Multiyear projects completing in financial year completing 2020/21 The Department has commenced with the implementation of the following multi-year road rehabilitation projects: Road Description Corridor Progress P175/1: Rehabilitation from Vanderbijlpark to Potchef- Southern corridor The project is at 74% complete. stroom - Phase 2. P39/1 Heavy Rehabilitation from Diepsloot to Mulders- Central corridor The project is at 42 % complete. drift.

Multiyear projects completing in financial year completing 2021/22 The Department has commenced with the implementation of the following multi-year road rehabilitation projects: Road Description Corridor Progress Rehabilitation of Roads P241/1 (R554) from 15.7km to Central corridor The contract was awarded to the service provider and the 19.75km and road D405 (R554) from 0.00 km to 8.75km contractor is busy with site establishment. (R82). P156/3 (R42) from P155/1 to D2563 Vanderbijlpark. Southern corridor The site was handed over and the contractor is busy with site establishment. Rehabilitation of P122/1 from P36/1 (R10) (Solomon Northern corridor The tender is on hold pending a forensic investigation by Mahlangu Drive Olifantsfontien). Provincial Treasury. K175: Rehabilitation of the Road from N4/2 to D670 The tender is on hold pending forensic investigation by (8.1km). Provincial Treasury. Rehabilitation of road D483 between P6-1 (Bapsfon- Tender advert closed on 23 of January 2020 and DRT is at the tein) and D713 Cullinan. evaluation stage. Rehabilitation of road P126/1 between Ontdekkers Western Corridor The project will be advertised in financial 2020/21. road and P6/1 Tarlton. Rehabilitation of road P103/1 between N14 and N1. Western and Central Corridors The project will be advertised in the financial year 2020/21.

60 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 61 Sub-Programme: Traffic Engineering • Abnormal Loads The National Road Traffic Act (Act 93 of 1996) (NRTA) and its asso- To provide safe, rapid, efficient, convenient, and environmentally com- ciated regulations prescribe certain limitations on the dimensions patible movement of people, goods, and services, the Department has and axle masses that a vehicle using a public road must comply initiated the following traffic engineering projects: with. The overarching purpose of this legal instrument is to ensure safe and efficient use of roads and protection of roads infrastruc- • Weighbridges ture. The Overload Management (Control) function gives effect to provisions of the National Road Traffic Act (NRTA). The Act regu- • The objective of the Gauteng Province’s Abnormal Vehicle Permit lates vehicle weight and vehicle axle mass, to protect people and Office is to establish and implement operational systems and roads infrastructure from negative effects of vehicle overloading. procedures, which gives effect to Section 81 of the National Road Regulations associated with this Act provides for method and Traffic Act, 1996 (Act 93 of 1996). The office is delegated to, maintenance of weight measuring instruments (Weighbridges), to subject to certain conditions and upon payment of certain fees enable legal prosecution of overload transgression. The provisions or charges, determine and authorize in writing, either generally require that weighbridge infrastructure and scales be maintained or specifically, the operation on a public road, of a vehicle which and calibrated to certain minimum standards, to be rendered legal. does not comply with the provisions of this Act or the conveyance on a public road of passengers, or any load otherwise than by the The objective of this function is to ensure the annual maintenance provisions of this Act. of weighing facilities and infrastructure in line with prosecution guidelines, to enable successful protection of persons, road • On an annual basis, the Abnormal Vehicle Permit Office processes infrastructure and prosecution. The Department has calibrated 4 an average of 20, 000 permits. In the financial year under review, it weighbridges during the financial year 2019/20. has processed 23, 349 permits.

Cumulative Amount of Permits Issued per Book Year R 25 000

R 20 000

R 15 000

R 10 000

R 5 000

R 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

2017-18 2018 -19 2019-20

60 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 61 62 STRATEGIC OBJECTIVES

Sub Programme: Maintenance

DEPARTMENT OFROADSANDTRANSPORT Percentage of surfaced roads in - - 0 <10% 0 <10% The assessment of surfaced roads was not completed as a result of the poor and very poor condition cancellation of the tender due to non-responsiveness of all bidders.

PERFORMANCE INDICATORS

Programme / Sub-Programme: Transport Infrastructure Performance Indicator Actual Actual Actual Planned Tar- Actual Deviation from Comment on deviations Achievement Achievement Achievement get 2019/20 Achievement planned target to 2016/17 2017/18 2018/19 2019/20 Actual Achieve- ment for 2019/20

Sub Programme: Maintenance Surfaced Roads Rehabilitated National Indicator Number of m2 of surfaced roads reha- 465,400 m² 396,610.00 m² 643,687.23 m² 306,360.00 m² 579,800.00 m² +273,440 m² More m² of surfaced roads rehabilitated due to an bilitated under-estimation of the m² to be surfaced by the Consulting Engineers (Boganala). The actual area surfaced was recalculated by the Department.

Surfaced roads resealed Number of m2 of surfaced roads 384,249.14 m² 610,894.11 m² 351,775.62 m² 96,000.00 m² 132,507.72 m² +36, 507.72 m² Various sections of identified roads deteriorated resealed. rapidly due to exceeded roads lifespan such as P66/1, P1/3, P95/1, P16/1, P241/1, P28/1, P42/1, K175, P122/1, P62/1, P126/1 and K69 were resealed.

GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 63 62 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

Re-gravel roads National Indicators Number of kilometres of gravel roads 117.24 km 158.15 km 137.79 km 76.01 km 78.57 km +2.56 km Poor condition of the road D1681 resulted in addition- re-gravelled al kilometres being re-gravelled. Blacktop patching Number of m² of blacktop patching 169,157.67 m² 178,189.62 m² 182,724.34 m² 66,000.00 m² 85,552.92 m² +19,552.92 m² Roads deterioration resulted in additional m2 of blacktop patching completed for the following identified roads: P126/1, D2762, P28/1, P123/1, D2159, P61/3, P88/1 and P24/1.

Roads bladed Number of kilometres of gravel roads 2,117.3 km 2,314.96 km 2,075.09 km 1,309.69 km 1,994.56 km +684.87 km Gravel roads were damaged due to the heavy vehi- bladed cles, ultimately, roads were not drivable and unsafe, resulting in more blading to the following roads: D734, D1884, D1133, D1313, D781, D1333, D327, D187, D734, D1884 and D1133. GAUTENG PROVINCIAL GOVERNMENT |

Job Creation Number of Maintenance jobs created 5,893 3,561 3,842 3,450 3,884 +434 The additional number of workers required to com- through the implementation of EPWP + + + plete the additional road maintenance work to ensure road safety issues. Rehab (450) 270 Delays in awarding of the following projects P156/3 33 (Rehab) = 3,900 Rehab (180) and P241/1 due to delays in the appointment of probi- = 3,875 = 4,064 ty auditors for Bid Specifications and Bid Evaluation. Further delays experienced due to the late issuing of work permit by the Department of Labour to com-

DEPARTMENT OFROADSANDTRANSPORT mence works. Traffic Engineering National Indicator Number of weighbridges calibrated to 4 4 4 4 4 - - SABS standard Provincial Indicator Number of abnormal load permits issued 22,169 24,308 23,707 24,000 23,349 651 Movement of non-essential goods and services were prohibited as per national lockdown directive. This resulted in a decline in the number of applications received.

63 • Strategy To Overcome Areas of Underperformance

Indicator Proposed Intervention Percentage of surfaced roads in poor and very poor The tender was advertised on 7 February 2020 and the evaluation stage has commenced. The project will be executed condition. in the financial year 2020/21.

Number of jobs created through the implementa- The Department has received the required permits for P156 and P241. The outstanding jobs will be created in the tion of EPWP principles (Rehab). financial year 2020/21.

Number of abnormal load permits issued. Normal issuance of permits will be reviewed upon the lifting of the lockdown.

• Changes to planned targets None

Linking performance with budgets Programme expenditure

Transport Infrastructure 2019 / 20 2018 / 2019 Final Appro- Actual Expen- (Over) / Under Final Appro- Actual Expen- (Over) / Under priation diture Expenditure priation diture Expenditure R’000 Infrastructure Planning 63,329 58,064 5,265 58,213 58,072 141

Infrastructure Design 154,781 111,765 43,016 176,765 176,717 48

Construction 560,835 536,202 24,633 880,782 825,607 55,175

Maintenance 1,429,828 1,427,135 2,693 1,618,080 1,592,264 25,816

Programme Support Infra- 31,717 26,181 5,536 92,067 88,329 3,738 structure Total 2,240,490 2,159,347 81,143 2,825,907 2, 740, 989 84,918

The allocation for this Programme includes the PRMG and Provincial earmarked infrastructure allocations. These two allocations form the core of this Programme and the Department.

Infrastructure Planning The unit is responsible for the infrastructure planning, which includes the route determinations, modelling centre and the freight databank, as well as integrated province-wide transport sector planning and multi-modalism that supports decisive spatial transformation. All new projects are within the Estimates of Capital Expenditure (ECE) and spending will continue to be realised in the financial year 2020/21.

Infrastructure Design The unit is responsible for the design projects for the road infrastructure projects as well as securing the land required for those projects. The issues related to landowners not accepting offers and having tax issues have negatively impacted the expenditure for the financial year 2019/20.

Construction The unit is responsible for the construction of roads within the Province. The underspending was as a result of service providers not appointed as planned due to unanticipated challenges during the tender process, construction of road did not proceed due to land grabbing.

Maintenance The unit is responsible for the maintenance of roads within the Province and implements this within the PRMG as well as additional resources from the equitable share allocations. The contracts within this unit are for major outsourced maintenance Programmes. The expenditure increased from R 742 in the financial year 2018/19 to R 767 in the financial year 2019/20.

64 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 65 4.3 Programme 3: Transport Operations compliance by operators. SMFs are also appointed to monitor and conduct technical inspection onboard, multi-point route and Purpose terminus. The objective of the Programme is to provide integrated, subsidised, province-wide public transport services, facilitate the provision of pub- Sub-Programme: Support Operations lic transport services and infrastructure in partnership with national and local government as well as private sector formations. The Programme Bus Subsidy Monitoring further provides policy development and planning to manage, integrate The Division of Revenue Act (DORA) requires that all bus contracts be and coordinate the transport system and infrastructure in the Province. monitored to ensure that the bus subsidy contract complies with appli- The objective of this Programme is to develop the policy framework to cable legislation. The contracts are manually monitored by both internal support a modern, integrated and intelligent transport system and pub- personnel and external Supervisory Monitoring Firms (SMFs). The De- lic transport infrastructure. The Programme consists of the following partment has received approval from Provincial Treasury to advertise the Sub-Programmes: tender for SMFs. Currently, all contracts are monitored by departmental internal monitors. The Department will implement electronic monitoring List of Sub Programmes in the financial year 2020/21. • Public Transport Services Public Transport Transformation STRATEGIC OBJECTIVES, PERFORMANCE INDICATORS, • Building Public Transport Cooperatives and Business Entities PLANNED TARGETS AND ACTUAL ACHIEVEMENTS The Department continues to engage the Taxi Industry to register Strategic Objective 1: as co-operatives or business entities. The registration of the taxi To provide a subsidised transport service that supports the move- industry will assist associations to pursue other business interests. ment of people through an efficient transport network that is safe, reliable and accessible. The Department is assisting the associations in Alexandra to To provide efficient public transport that is safe, reliable and accessible establish an Automotive Hub that will link the taxi operations to to the public, the Department has executed the following projects: BRT Phase 1C operations. The financial model was concluded and the working capital was solicited with funding institutions that will Sub-Programme: Public Transport Services be serviced by the Taxi Industry.

Public Transport Operations Grant (PTOG) The Taxi Industry has created 2 (1-Stop) shops for spares and other • Bus Subsidies automotive industry essentials in Tshwane West and Ivory Park. The Department manages 27 bus subsidy contracts that have been awarded to 13 bus operators. The subsidised bus services • Transport Training Academy are operated by bus companies on behalf of government through a system of either interim or tendered contracts. The 27 contracts The Department is in the process of establishing a training are funded by Public Transport Operations Grant (PTOG) and 2 academy. A Memorandum Of Understanding (MOU) was signed ceded contracts from North-West Province are funded by the with the Taxi Industry and Armscor related to commuter safety and Gauteng Province. These contracts are operated in the 3 metros, driver training. The training will be aimed at improving commuter namely: the City of Johannesburg, City of Tshwane and City of perceptions and experience. Ekurhuleni as well as Sedibeng District Municipality. The number of operational contracts has been reduced to from 32 to 27 subsi- Sub-Programme: Public Transport Integration And dised contracts (three Atteridgeville and North-West Star contracts Special Projects operated with shortage contractual bus fleet) due to discontinued operations as from July 2019. • Smarter Mobility Summit The summit was aimed at achieving smarter and electric mobility All bus subsidy contracts are monitored by external service for the creation of better connected and sustainable societies. providers referred to as Supervisory Monitoring Firms (SMFs) as The Smarter Mobility Africa initiative was supported by leaders required by the Division of Revenue Act (DoRA) to ensure contract from government and business constituting of the Motor Industry,

64 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 65 Research Institutions and Media houses. The initiative highlighted a need to accelerate the transition to electric vehicles and fully embracing smart mobility or risk being left behind on global trends.

The Smarter Mobility Africa initiative created a platform for ideas to be shared on different innovations and technologies reflecting on the maturity and the trajectory of research and development. The Original Equipment Manufacturers (OEMs) exhibited their latest technologies in electric vehicles including cars that had not been officially launched into the market.

• Integrated Fare Management » Transport Management Centre (TMC) The Transport Management Centre (TMC) is the central point for communicating transport-related information to the media and motoring public. It is also a platform for agencies to coordinate responses to transport situations and conditions. The objective of the Transport Management Centre is to reduce transportation difficulties by either controlling the circulation of all modes of transport or by focusing on specific modes such as public transport.

The Department identified 45 Commissioner Street, (17th Floor), Johannesburg as a suitable location to host the interim TMC. The preliminary design and the business case was completed.

66 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 67 66 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

STRATEGIC OBJECTIVES

Programme Name: Transport Operations Strategic objectives indicator Actual Achievement Actual Achievement Actual Planned Target 2019/20 Actual Deviation Comment on deviations 2016/17 2017/18 Achieve- Achieve- from ment ment planned 2018/19 2019/20 target to Actual Achieve- ment for 2019/20

Sub Programme: Public Transport Services

Provincial Indicators

Number of business and operation- - - 0 Finalisation and awarding 0 11 Negotiations with Municipalities in respect of the al plans developed by 2018. of 11 bus contracts based Inter-Governmental Authorisation Agreement took on operational plans and longer than expected. The Model tender docu- associated independent ment is still awaiting approval from the National monitoring contracts. Transport Minister before advertising of the tender can commence. The business and operational plans were not finalised. GAUTENG PROVINCIAL GOVERNMENT |

Public Transport Integration & Special Projects

Integrated Fare Management Back office architecture Development of the 0 Integrated Fare Manage- 0 2 Delays in the identification of the suitable site for System operationalised by 2019 completed Transport information ment Back office. the TMC. website completed. Transport Management The website for the Centre Operations. Gautrain has been launched. DEPARTMENT OFROADSANDTRANSPORT All bank-issued cards can be used on the Gautrain network including BRT cards.

Transport Management Centre Plans finalised. 67 68 PERFORMANCE INDICATORS

Programme / Sub-Programme: Transport Operations Performance Indicator Actual Actual Actual Planned Tar- Actual Deviation Comment on deviations GAUTENG PROVINCIAL GOVERNMENT | Achievement Achievement Achievement get 2019/20 Achievement from planned 2016/17 2017/18 2018/19 2019/20 target to Actual Achievement for 2019/20 Sub Programme: Public Transport Services National Indicators Number of routes subsidised. 3 476 3 369 3,349 (Aver- 3,259 3 032 227 The outstanding figures of routes, kilometres and trips could not age) (Non-cumu- be achieved due to the ABS contract (D28, D29 and D30) which is lative) a subsidiary company to North – West Star has not been opera-

DEPARTMENT OFROADSANDTRANSPORT tional as from July 2019. Number of kilometres subsi- 95 134 951 87 023 387 79 665 112 100 127 643 76 128 776,13 23 998 866,87 dised. Number of trips subsidised. 1 792 002 1 630 325 1 498 429 1 865 176 1 547 451 317,725 Number of provincial regulating 54 26 6 4 5 1 The PRE- is obliged to finalise all received cases in term of regula- entity hearings conducted in tions 8 of the National Land Transport Regulations of 2009. terms of Section 59 & 79 of the NLTA 2009 Public Transport Integration & Special Projects Provincial Indicator Number of intermodal facilities 0 0 0 Vereeniging 0 1 The taxi industry requested modification of designs which resulted completed. Intermodal in extended Stakeholder consultation and the delays in the finali- facility sation of designs for the re-scoped intermodal facility. practical completion

Number of bicycles distributed 3 000 0 6 000 0 - - - through the Shovakalula Project GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 69 • Strategy To Overcome Areas of Underperformance

Indicator Proposed Intervention

Number of business and operational plans developed by 2018. The awarding of 11 bus contracts will be finalised in the financial year 2020/21.

Integrated Fare Management System operationalised by 2019. The Department will finalise the interim TMC building or renovation, including its operations in the next financial year 2020/21.

Number of routes subsidised.

Number of kilometres subsidised. Continuous engagements with operators and the introduction of the new bus contracts as a long- term solution.

Number of trips subsidised.

Number of intermodal facilities completed. A re-scoped design and business case to be finalised for submission to Provincial Treasury for project funding allocation in the financial year 2020/21.

• Changes to planned targets None

Linking performance with budgets Programme expenditure

Transport Operation 2019 / 20 2018 / 2019 Final Actual (Over) / Under Final Actual (Over) / Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 Public Transport Services 2, 682, 707 2, 224, 203 458, 504 2, 533, 725 2, 309, 086 224, 639

Programme Support Oper- 7, 288 2, 530 4, 758 3, 782 2, 605 1, 177 ations Total 2, 689, 995 2, 226, 733 463, 262 2, 537, 507 2, 31,1 691 225, 816

The PTOG and the North-West Star demarcation contracts and IPTN infrastructure projects form the major allocations within this Programme. The Grant is not fully spent mainly as a result of penalties imposed no bus operators due to trips that Did Not Operate (DNO’s) for the financial year 2019/20.

68 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 69 4.4 Programme 4: Transport Regulation ESTABLISHMENT OF NEW REGISTERING AUTHORITIES/ DLTC’S/TOLABs Purpose The purpose of the Programme is to regulate private and public transport Sebokeng Transport Operating License Administrative Bodies by facilitating the provision of Learner and Driver License, Motor Vehicle (TOLABs) fitness and motor vehicle registration and licencing, registration of oper- A new TOLAB Centre is planned for construction in Sebokeng Township ating licenses and the establishment of TOLABS and the Provincial Regu- located in the Southern Corridor. The objective of this initiative is to latory Entity (PRE), public and freight transport services and infrastructure improve access to transport and licence services for the community of in partnership with national and local government as well as private sec- Sebokeng and surrounding areas. The procurement process to appoint tor formations. The two Sub-Programmes are Transport Administration contractor has commenced and the tender for the construction of the and Licencing, and Operator License and Permits. Sebokeng DLTC/TOLAB was advertised in March 2020.

• Transport Administration and Licencing Revenue Management • Operator License and Permits The Departmental revenue is generated through tax receipts which comprise of motor vehicle registration and licencing fees. Motor Vehicle Li- STRATEGIC OBJECTIVES, PERFORMANCE INDICATORS, cense Tax revenues have grown from R 2, 95 billion in 2014/2015 to R PLANNED TARGETS AND ACTUAL ACHIEVEMENTS 4,13 billion in 2019/2020. A total of R 4,131 billion has been collected during the period under review representing a growth of R 170 million Strategic Objective 1: from financial years 2018/19 to 2019/20. To modernise the regulatory services that is accessible, reliable and customer centred. Below is the trend analysis for revenue growth. To provide accessible and reliable services to the public, the Department has executed the following projects:

Annual Growth in Rands R 4500 000 R 4131 776 R 3961 563 R 4000 000 R 3707 040

R 3500 000 R 3404 668 R 3217 032 R 2949 662 R 3000 000

R 2500 000

R 2000 000

R 1500 000

R 1000 000

R 500 000 R 267 370 R 302 372 R 254 523 R 187 636 R 170 213 R 0 R 0 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

Tax Revenue Growth in Rands

Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 6 Year Total

Tax Revenue R 2,949,662 R 3,217,032 R 3,404,668 R 3,707,040 R 3,961,563 R 4,131,776 R 21,371,741

Annual R 0 R 267,370 R 187,636 R 302,372 R 254,523 R 170,213 R 1,182,114 Growth in Rands % Growth 0% 9% 6% 9% 7% 4% 40%

70 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 71 70 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

PERFORMANCE INDICATORS

Programme / Sub-Programme: Transport Regulation

Transport Administration and Licencing

National Indicator

Number of compliance inspec- 250 206 135 140 129 11 The outstanding compliance inspections could not be completed tions conducted as some centres in COJ closed earlier due to COVID-19 and received a proposal from the City of Tshwane to scale down and suspend services due to the COVID-19 situation. GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 71 • Strategy To Overcome Areas of Underperformance

Indicator Proposed Intervention Number of compliance inspections conducted. Safety measures put in place to protect staff and at the centres to curb the spread of COVID-19.

• Changes to planned targets None

Strategic Objective 2: To regulate public transport services and Public Transport Operators to achieve safe and reliable transport services. To regulate public transport through registration and issuance of operating licenses, the Department has executed the following projects:

Sub-Programme: Operator Licence And Permits

Operating Licences To regulate the public transport service in the province, a total of 15, 475 permits/operating licences were issued and a total of 65 permits were converted to operating licences.

72 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 73 72 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

PERFORMANCE INDICATORS

Programme / Sub-Programme: Transport Regulation Performance Indicator Actual Actual Actual Planned Tar- Actual Deviation Comment on deviations Achievement Achievement Achievement get 2019/20 Achievement from planned 2016/17 2017/18 2018/19 2019/20 target to Actual Achievement for 2019/20 Sub Programme: Operator Licence and Permits Provincial Indicator Sub Programme: Operator Licence and Permits Number of permits/ operating 10,248 12,273 12,898 8,000 15,475 +7,475 Additional applications for Mini-bus operating licences renewals license issued by 2019 received due to a Provincial Notice issued in November/De- cember 2019 stating that as from the 6 January 2020, operators who fail to submit applications for renewal within 30 days before expiry will be requested to apply for new operating licences.

Number of permits converted to 2,603 798 181 1,000 65 935 The submission of permit conversion applications is solely operating licenses by 2019 dependent on operators. The pace at which these are submitted is very slow. The Department has been continuously engaging with pub- GAUTENG PROVINCIAL GOVERNMENT | lic transport operators to submit conversion applications as required by law.

Registration and Monitoring Number of audited monitored 570 374 187 400 177 223 The Department has liaised with the e-hailing services to monitor routes completed by 2019 the routes. However, some operators are no longer part of the e-hailing service; hence 177 operators could not be monitored.

Number of Non-Mini Bus Taxi 2,094 3,586 3,605 1,500 2,573 +1,073 More taxi modes registered due to the approval of ranking facil- modes registered by 2019 ities by the Municipalities for new applications of Non-Minibus Taxis. DEPARTMENT OFROADSANDTRANSPORT 73 • Strategy To Overcome Areas of Underperformance

Indicator Proposed Intervention Number of permits converted to operating licences by 2019. The Department will continue engagements with public transport operators to convert their existing public transport permits to operating licences. Number of audited monitored routes completed by 2019. The Department will continue to engage with e-hailing service companies to provide a list of Partner Drivers operating to enable the monitoring of routes.

• Changes to planned targets None

Linking performance with budgets Programme expenditure

Transport Operation 2019 / 20 2018 / 2019 Final Appro- Actual Ex- (Over) / Final Appro- Actual Ex- (Over) / priation penditure Under Ex- priation penditure Under Ex- penditure penditure R’000 Transport Administration and Licencing 186,087 162,749 23,338 161,774 160,369 1,405

Operator Licence and Permits 146,855 126,576 20,279 132,303 131,257 1,046

Total 332,942 289,325 43,617 294,077 291,626 2,451

The budget for the TOLAB and DLTC infrastructure projects is located within this Programme, together with the allocations for licencing and registration functions. The audited outcome within this Programme is at R 300 million in the financial years 2017/18 to R 292 million in 2018/19.

74 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 75 5. TRANSFER PAYMENTS

5.1 TRANSFER PAYMENTS TO PUBLIC ENTITIES

Name of Public Entity Services rendered by the public Amount transferred Amount spent by the Achievements of the entity to the public entity public entity public entity Gautrain Management Agency The management coordination and 2,153,314 2,153,314 Refer to GMA Annual oversight of the Gautrain project. Report

6. CONDITIONAL GRANTS

6.1. CONDITIONAL GRANTS AND EARMARKED FUNDS RECEIVED

The table below describes each of the conditional grants and earmarked funds received for the period 1 April 2019 to 31 March 2020.

Public Transport Operations Grant

Department/ Municipality to whom the grant has been transferred Gauteng Department of Roads and Transport (GDRT)

Purpose of the grant Provision of public transport services in terms of contracts which are operated on schedules and are kilometre based. Expected outputs of the grant Number of kilometres: 100,127,643 Number of Trips: 1,865,176 Number of Routes: 3,259 Actual outputs achieved Kilometres: 76,128,776.13 Trips: 1,547,451.00 Routes: 3,032 Amount per amended DORA (R’000) R 2,436 074 Amount transferred (R’000) R 2,436,074 Reasons if amount as per DORA not transferred None Amount spent by the Department/Municipality (R’000) R 2,014,534 Reasons for the funds unspent by the entity • Non-operational subsidised contracts • A high number of Did Not Operate (DNO) trips Monitoring mechanism by the transferring Department Submission of monthly expenditure reports by the distributing Department (GDRT)

74 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 75 Provincial Roads Maintenance Grant

Department / Municipality to whom the grant has been transferred Gauteng Department of Roads and Transport (GDRT)

Purpose of the grant Routine, Preventative and periodic maintenance of roads infrastructure

Expected outputs of the grant Maintenance of provincial roads infrastructure and achievement of planned targets

Actual outputs achieved Number of m² roads resealed = 132,507.72 and no of m² rehabilitated = 579,800m² Number of km re-gravelled = 78.57 km Number of m² blacktop potholes patched = 85,552.92m² Number of km gravel roads bladed = 1,994.56km

Amount per amended DORA R 767,506 Amount transferred (R’000) R 767,506 Reasons if amount as per DORA not transferred None Amount spent by the Department/ municipality (R’000) R 767,354 Reasons for the funds unspent by the entity None Monitoring mechanism by the transferring Department Quarterly reports

Expanded Public Works Programme Infrastructure Grant (EPWP) Department/ Municipality to whom the grant has been transferred Gauteng Department of Roads and Transport (GDRT)

Purpose of the grant Job creation Expected outputs of the grant 3,900 Actual outputs achieved 4,064 Amount per amended DORA R 6,386 Amount transferred (R’000) R 6,386 Reasons if amount as per DORA not transferred None Amount spent by the Department/ municipality (R’000) R 6,386 Reasons for the funds unspent by the entity None Monitoring mechanism by the transferring Department Quarterly reports and monthly Management Information System (MIS) reporting system

76 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 77 7. CAPITAL INVESTMENT

7.1. CAPITAL INVESTMENT, MAINTENANCE AND ASSET MANAGEMENT PLAN

• Progress made on implementing the capital, investment and • Ongoing surfaced roads upgraded to be completed in the asset management plan. financial year 2022/23: The Department has an asset road network of 5, 638 roads per » Upgrading of K73 between Woodmead Drive and Allan- km comprising of 4, 200km of paved roads and 1, 438 km unpaved dale Road (D58) Mushroom farm, roads with 676 bridges and 428 culverts. » K31 access to Green Gate Development: Reconstruction and upgrade of the M5 Beyers Naude Road, • Infrastructure projects which have been completed in the » Upgrading of Road K148: Intersection with N3, current year and the progress in comparison to what was » Vaal River City Interchange, planned at the beginning of the year » Upgrade of K101 from D795 Olifantsfontein to N1 Brak- Rehabilitation of P158 (N14) from Brakfontein to Diepsloot - project fontein, and completed on the 30 July 2019. » K15 Phase 3: Upgrading of K15 Adcock Road between K102 Main Street Dobsonville to Wild Chestnut Street • Infrastructure projects that are currently in progress (list Protea Glen. projects) and when are they expected to be completed. » Sebokeng TOLAB – expected completion in 2021/22 Road Rehabilitation financial year, • Ongoing roads rehabilitated to be completed in the finan- » Sebokeng DLTC – expected completion in 2021/22 financial year 2020/21: cial year, and » P175/1: Rehabilitation from Vanderbijlpark to Potchefst- » Vereeniging Intermodal facilities – expected completion room Phase 2, and in 2021/22 financial year. » P39/1 Heavy Rehabilitation from Diepsloot to Mulders- drift. • Ongoing surfaced roads upgraded to be completed in the financial year 2020/21: • Ongoing roads rehabilitated to be completed in the finan- None cial year 2021/22: » Rehabilitation of Roads P241/1 (R554) from 15.7km to • Ongoing surfaced roads upgraded to be completed in the 19.75km and road D405 (R554) from 0.00 km to 8.75 km financial year 2021/22: (R82), » K54: Mamelodi (Tsamaya Road) to R104 Pretoria Bronk- » P156/3 (R42) from P155/1 to D2563 Vanderbijlpark, horstspruit Road, » K175 Rehabilitation of the Road from K175 (N4/2) to D670 » K69 (Upgrading and doubling of Hans Strijdom (Solomon (8.1km), Mahlangu) from the N4 to Mamelodi to K54), and » Rehabilitation of road D483 between P6-1 (Bapsfontein) » K46 (P79 - 1): Upgrading from a single to a dual carriage- and D713 Cullinan, and way of Road K46 (P79 - 1) William Nicol from PWV5 to » Rehabilitation of road P73 and Strengthening of road P73 Diepsloot /N14 Phase 2. (R553) between Ennerdale and Eldorado Park.

76 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 77 • Plans to close-down-grade any current facilities. • Measures are taken to ensure that the Department’s asset None register remained up-to-date during the period under review. • Progress made on the maintenance of infrastructure. The Department conducts annual physical asset verification on all The roads maintenance focusses on the following on-going Sub its movable assets. A total number of 28, 778 movable assets were programmes: verified which includes vehicles, computer equipment and machin- » Preventative roads maintenance, ery and furniture. The asset management directorate continues to » Re-active roads maintenance, and play a pivotal role in coordinating the maintenance and updating » Routine roads maintenance. of the Department’s immovable asset register. Also, as part of the regular maintenance and updating of the road asset management • Developments relating to the above that are expected to system, the Department through the assistance of the Council of impact on the department’s current expenditure. Scientific Research (CSIR) conducts visual, conditional and safety Rehabilitation, reseal and pothole patching-gravelling and blading assessments for the provincial road network. The results thereof of gravel roads will impact on more than 65% the department’s form the basis for future road infrastructure upgrades, rehabili- current budget. tation and maintenance and the continued maintenance of the Department’s immovable asset register. • Details as to how asset holdings have changed over the period under review, including information on disposals, • The current state of the department’s capital assets, for scrapping and loss due to theft. example, what percentage is in good, fair or bad condition. As of 31 March 2020, the Department’s entire asset base totalled » Paved network – 65 % fair, 25% poor and 10% good R41, 874 billion. The asset base in the main comprises of roads, bridges, land for future road construction and various categories of • Major maintenance projects that have been undertaken movable assets totalling R569, 653 million. during the period under review. None During the current financial year, the Department invested approximately R494, 661 million on improving and rehabilitating key segments of the provincial road network. A total number 11 of obsolete and redundant movable assets were disposed of through approved donations to non-profit organisations. All assets that are reported lost or stolen are reported in the Department’s loss register and subsequently referred to the Department’s anti-fraud and corruption unit for further investigation.

• Progress made in addressing the maintenance backlog during the period under review.

Infrastructure Projects 2019 / 20 2018 / 2019 Final Appro- Actual Ex- (Over) / Final Appro- Actual Ex- (Over) / priation penditure Under Ex- priation penditure Under Ex- penditure penditure R’000 New and replacement assets 11,050 12,435 (1,385) 36,868 121,089 (14,890) Existing infrastructure assets 1,876,151 1,708,674 167,477 2,254,464 2,170,449 69,457 - Upgrades and additions 388,757 314,233 74,524 423,887 257,309 88,449 - Rehabilitation, renovations and 222,793 217,578 5,215 534,699 656,406 (18,667) refurbishments - Maintenance and repairs 1,264,601 1,176,863 87,738 1,295,878 1,256,734 (55,098) Non- Infrastructure - - -

- Current - 121,716 (121,716) 142,408 87,635 54,773 - Capital - - -

Total 1,887,201 1,842,825 44,376 2,433,740 2,379,173 54,567

78 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 79 78 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 79 PART C GOVERNANCE

80 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 81 1. INTRODUCTION

The Department remains committed to maintaining the highest standards of governance which is fundamental to the management of public finances and resources. Clients and stakeholders need assurance that the Department has good governance structures in place to effectively, efficiently and economically utilise State resources which are funded by the taxpayer. Thus, this section outlines the good governance structures which were implemented during the financial year under review.

2. RISK MANAGEMENT

• The Department has a risk management policy and strategy. • The Department conducts regular risk assessments to determine the effectiveness of its risk management strategy and to identify new/emerging risks. • The Department has a Risk Management Committee that is chaired by an independent person and advises management on the overall system of risk management, especially the mitigation of unacceptable levels of risk. • The Audit Committee is the advisory body for the Department on risk management and independently monitors the effectiveness of the system of risk management. • Despite slow progress in the management of risks, the Department has committed to manage risks continuously. Also, the performance contract of senior management has incorporated risk management for accountability purpose.

80 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 81 3. FRAUD AND CORRUPTION

• The Department has an anti-fraud and corruption policy and strategy. • The Department conducts regular fraud risk assessments to determine the effectiveness of its risk management strategy and to identify new/ emerging fraud risks. • The Department has an Ethics Committee where fraud and corruption issues are monitored and reported • The Audit Committee is the advisory body for the Department on anti-fraud and corruption where fraud-related issues and independently monitors the effectiveness of the system thereto. • The Department has an approved whistleblowing policy which is communicated ongoing through ethics and anti-fraud and corruption awareness sessions and induction workshops. • Allegations are reported using various mechanism i.e by respective management, hotline, internal audit, fraud detection reviews.

4. MINIMISING CONFLICT OF INTEREST

Accountability is fundamental to organisational integrity. All employees are expected to take responsibility for their actions. Disciplinary matters are resolved by a prescribed disciplinary code and procedure prescription. Labour relation support the introduction and implementation of disciplinary action for the bridge of code of conduct. Application of a disciplinary measure is an integral component of effective fraud and corruption deterrent strategy within the Department.

Our Department is doing its best to minimize conflict of interest by: Conducting awareness sessions on Public Service Regulations, 2016 under regulation 13b and f and it is supported by the Code of conduct for Public service that has a pledge at the back. The Department has also reviewed its policy on conflict of interest. It is also working with various stakeholders such as DPSA, GAS and AG to identify conflict and potential conflict from officials. The disclosure that is filed by SMS, MMS and officials from the Finance Branch also help to identify those who might have a conflict of interests. To further minimize conflict of interest, Communications develops posters and upload information to the intranet to educate and sensitise officials. Induction programmes are held in partnership with HR development with the newly appointed officials and an online course is available that covers a lot of issues on ethics management.

82 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 83 5. CODE OF CONDUCT

The Public Service Commission (PSC) developed a code of conduct for the public servants to promote the high standard of professional ethics. The ethical principles contained in the Code apply to GDRT employees. The Department implemented the code and managers ensure that all employed within the Department adheres to it.

6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES

The Department provided OHS training programme to a total number of 365 employees with specific focus on Hazard Identification and Risk Assess- ment (HIRA), firefighting, emergency preparedness, first aid, accident investigation and occupational health and safety for supervisors. This programme was implemented to prepare the Department in dealing with safety of employees and management of disasters. A policy on Safety, Health, Envi- ronment, Risk and Quality Management (SHERQ) was reviewed. The worldwide spread of COVID-19 resulted in South African government declaring a National State of Disaster and subsequent lockdown in March 2020. Prevalence of this virus resulted in disruption of service delivery in GDRT. A steering committee was established in line with DPSA directions and developed a response plan to mitigate the impact of COVID-19 in the Department.

7. PORTFOLIO COMMITTEES

• The dates of the meeting The Department regularly engaged with the Portfolio Committee where it tabled various reports and presentations at the various meetings which were scheduled as follows:

82 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 83 » Portfolio Committee Meeting - Friday, 12th July 2019 – Vereeniging Community Hall: Presentations on Budget Vote 9 for 2019/20 FY and Fourth Quarterly Performance Report 2018/19 FY

» Portfolio Committee Oversight Visit to K46 William Nicol Project – Friday, 19th July 2019

» Portfolio Committee Meeting – Friday, 19th July 2019: Presentation of Responses to Committee Questions on the Budget Vote 9 for 2019/20 FY and Fourth Quarterly Report 2018/19 FY

» Portfolio Committee Workshop – Friday, 02 August 2019: Presentation to the Committee on the State of Transport in the Gauteng Province

» Portfolio Committee Meeting – Tuesday, 10th September 2019: Presentation on the First Quarterly Report 2019/20 FY and Focused Intervention Study (FIS) on the Capacity on Senior Management and Technical Skills of the Department and g-FleeT Management

» Oversight Visit at the g-FleeT Precinct – Tuesday, 10th September 2019

» Portfolio Committee Strategic Planning Session – 22nd October 2019: Presentation on Key Strategic Projects for Implementation as per the Department and Entities Strategic Plans for 2019/2024

» Portfolio Committee Workshop – Thursday, 07 November 2019: Political Economy of Transport in the Province

» Portfolio Committee Meeting – Thursday, 14 November 2019: Presentation on Responses to Committee Questions on the Annual Report 2018/19 FY and Second Quarterly Report for 2019/20 FY

» Portfolio Committee Meeting – 21 November 2019: Engagement on Committee Questions on the Annual Report 2018/19 FY and Pre- sentation on the Second Quarterly Report 2019/20 FY

» Portfolio Committee Meeting – Wednesday, 27 November 2019: Engagement on the Revised and Approved Responses to Committee Questions on the Annual Report 2018/19 FY and Second Quarterly Report 2019/20 FY Follow up Questions – Bus Commuter Com- plaints and Mechanism to respond these complaints, Progress Report on Queue Management System Implementation and theft of equipment in the other centres, and presentation on the Departmental Communication Strategy

» Portfolio Committee Oversight Visit to Koedoespoort Regional Office – Friday, 14th February 2020: State and functionality of the centre

» Portfolio Committee Oversight Visit to Department’s Infrastructure Projects – 18th February 2020: K54 Road Construction Project and K69 Solomon Mahlangu Road Upgrade Project in Mamelodi

» Portfolio Committee Meeting – 3rd March 2020: Presentations on Responses to the 3rd Quarterly Report 2019/20 FY, Responses to House Resolutions and FIS on Lack of Capacity on Senior Management and Technical Skills of the Department and g-FleeT Manage- ment

» Portfolio Committee Meeting – 13th March 2020: Engagement on the Oversight Visit Findings to various Department’s projects & House Resolutions passed in 2019

• Matters raised by the Portfolio Committee and how has the Department addressed these matters (Refer to next page)

84 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 85 Matters Raised Dept’s Response The Department should provide the state of readiness report The Department continues to improve its planning processes including the alignment of budget allocation in realising the set service delivery mandates in the financial with targets. Systems of internal control to achieve the desired target are in place. However, the challenges year under review. around implementation continue to hamper the Department’s progress of achieving the desired outcome. The Department has developed and is implementing intervention plans on some of the performance targets.

The Department should provide a detail report on the budget Department presented a detailed response to the Committee. The Department confirmed that the service cut in the Transport Infrastructure programme, explaining the delivery measures and targets that have been tabled together with this reduced budget are aligned, i.e. the likely impact of this on the service delivery measures. targets are aligned to the available resources. That means that the Department will therefore be able to deliver on the service delivery measures as set out because they have been adjusted to match the allocated resources.

The Department should explain as to why the investment in The Department experienced delays in the open tender process for several high-value construction projects, constructing new roads is low. which then meant that Treasury could not allocate budget as there was no clear state of readiness.

The Department should present their contribution towards The Department contributed R32,523,520.00 to Emfuleni Local Municipality as approved by EXCO. The work providing road infrastructure in the non-provincial roads, done included pothole patching and rubble removal. particularly local government roads in all corridors.

The Department should provide a progress report on the Department presented a report on progress to date, challenges experienced and plans devised for a lon- appointments of new bus contractors ger-term sustainable solution to the Subsidised Bus contracts which will see better service for commuters and a sustainable Bus Transport industry. Provide a report on the allocations to Municipalities on the A Budget of R42 million is allocated for the reseal of Vilakazi and Adams streets and rehabilitation of maintenance of road infrastructure and list of projects Moshoeshoe street

The entity should update the Committee on the Gautrain The Gauteng Rapid Rail Integrated Network (GRRiN) feasibility study was completed in 2017 and submitted extension study in relation to the Gauteng Household Travel to the national treasury. The demand modelling was updated in 2018 to consider various fare options. As study that will be completed in the current financial year. and when additional information is completed the model can be updated. This would include the Gauteng Household Travel study.

The entity should consider subsidising passengers instead of International experience has shown that subsidising the passenger rather than the mode of public transport the operational system can only be considered if the level of the integrated public transport system of a metropolitan area has reached a high level of maturity. If this level of maturity has not been achieved there are very negative unintended consequences. For example, if the MetroRail passengers were to receive the subsidy amount that is paid to Metrorail, which is more than twice the ticket price, the majority will abandon the MetroRail service and use the mini-bus taxis

The Department should provide factors that influenced the A detailed report was presented to the Committee. adjustments in all programmes The Department should list the underperformed project with The Department tabled a detailed report in a tabular form which depicted the underperformed projects with its allocated budget and expenditure at the end of the finan- allocated budget and expenditure. cial year in the Transport Infrastructure programme

The Department should indicate the requested rollovers on The Department confirms that no rollovers have been requested in the 2019/20 financial year. each project, and this should be done with the transport infrastructure budget in the current financial year 2019/20

The Department should explain as to why the Mamelodi and At the beginning of the financial year, all subsidised bus contracts are allocated annual budget according Meyerton contracts were cancelled due to insufficient funds to the original budget baseline as determined by the National Treasury and the National Department of whereas this programme recorded an under expenditure Transport. Mamelodi and Meyerton contracts were also allocated budget in a similar way.

These contracts were put out to tender however, the bid prices were triple the allocated budget for that specific year. The Department approached Provincial Treasury to augment the subsidy shortfall, but unfor- tunately, Provincial Treasury could not assist due to the tight fiscus space. The recorded under expenditure emanate from accumulated penalties and trips that were not operated (DNOs) by subsidised bus operators. Non-performance has been attributed to old bus fleet breakdowns, maintenance short-comings and the inability of the operators to recapitalise based on the current short-term contracts.

Provide a detailed report on measures in place to curb the The Department submitted a detailed response in this regard. continuous underspending of the Administration Programme allocated budget within the tolerable underspending of 3% in the next financial year

Provide a detailed report on the measures in place to The Department’s decline in the performance of Transport Infrastructure was due to the current improve the performance of the Transport Infrastructure procurement system which is lengthy and extremely onerous and requires the appropriate levels Programme. of skills and competence to ensure successful implementation. Most projects were at the tendering stage and Gauteng Provincial Treasury could not allocate budget since the projects were not ready for implementation. However, the Department anticipates implementing the projects in the next financial year.

84 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 85 The planned recruitment and selection process was halted to allow the finalisation of organisational structure review to be concluded. The Head of Department post is managed by the Office of the Premier. The post was advertised in July 2019 and Department will await communication and confirmation of appointment from the Office of the Premier once the process has been completed. Progress made on the Filling of Senior Management positions namely, HOD and DDG Transport Branch as Due to moratorium placed by the Gauteng Department of Roads and Transport in 2019, the Entity well as COO and CFO in g-Fleet Management. could not proceed with the recruitment process for the COO post that was advertised during the first quarter the 2019/20 financial year.

However, the Entity has submitted a new request for approval for the advertising, shortlisting and interviews of critical and funded posts to the Department.

The Queue Management System has been developed. We are now in the process of procuring the following hardware: 19inch Touch screen, Smart Computer, Audio and Video cable to connect Progress made on the implementation of Queue Man- to a television and smart computer, Printer for tickets and paper roll, Audio mixer, Wall mounted agement System in the Tshwane TOLAB, Mabopane speakers, Television with mounting brackets. MVR and Kliptown DLTC

This equipment is to be delivered and configured by 31 March 2020.

Measures put in place to ensure planned targets under There is the monitoring of bus subsidy contracts and the Department has also introduced the the Transport Operations programme are achieved electronic monitoring system which will assist the physical monitoring to achieve the planned timeously and within the allocated budget targets.

The Department is in the process of finalising the appointment of the SMFs. The tender process Developments regarding the appointment of SMFs for has been completed and the DAC recommendations for the appointment of the service provider subsidised bus contracts. has been submitted for approval and appointment will be done immediately thereafter.

8. SCOPA RESOLUTIONS

• (Refer to next page)

86 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 87 86 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

Resolved Resolution No. Subject Details Response by the Department (Yes/No) The Department (Main Vote), g-FleeT Management and Gautrain Request to submit the detailed plans indicating steps to ensure Management Agency submitted their detailed reports and plans to compliance with PFMA and the Achievement of Clean Audit in the RFI [October 2019] Request for Detailed Reports. ensure compliance with PFMA and the Achievement of Clean Audit Yes. 6th Term of the Legislature and the 6th Gauteng Provincial Adminis- in the 6th Term of the Legislature and the 6th Gauteng Provincial tration Administration. Provide the breakdown of the list of lawsuits referred to in the audit 1. a Detailed report submitted to SCOPA as requested. Yes. reporting (as at 31 March 2019); including age analysis thereof. Provide a progress report in the finalisation of lawsuits and their 1. b outcomes. Where appropriate, the settlement amounts must be Detailed report submitted to SCOPA as requested. No. provided. Provide a breakdown of the list of new lawsuits of the 30th Septem- 1.c Detailed list and report submitted to SCOPA as requested No. ber 2019 and a progress report on their finalisation. In terms of third-party claims emanating from state vehicle accidents, an internal investigation is conducted for each matter which is usu- ally accompanied by an opinion from Legal Services. The purpose of the investigation and legal opinion is to ascertain whether the state vehicle driver forfeits state cover or not in line with the condition as Provide an explanation if in allocating the liability emanating from stipulated in paragraph 12.2.1(g). the lawsuits did the Department take the necessary steps to apply Treasury Regulation 12.2.1? If yes, the department must state the Furthermore, the Entity bills the client departments for all third-party 1.d Yes. SCOPA Preliminary Questions cases where this was applied and a summary/detailed outcome claims emanating from accidents involving the use of state vehicles GAUTENG PROVINCIAL GOVERNMENT | Emanating from Report on the Audi- thereof? If no, the department must provide detailed for not applying in their custody. tor-General’s Report on the Financial the Regulation. Client departments are encouraged to have their internal processes Statements and Performance Infor- to recover from officials if through their acts or omissions forfeited mation of the Department of Roads state cover. and Transport for the Year Ended 31 March 2019 (DRT) Enclosed as Annexure G is a schedule of third-party claims allocated to various client departments. Provide reasons why provisions were not made in the financial 1.e statements of the department for possible liabilities that may arise Detailed report submitted to SCOPA as requested. Yes. from the lawsuits against the department. Due to the fact that most of the lawsuits in GPDRT relate to road

DEPARTMENT OFROADSANDTRANSPORT maintenance issues, the Department has appointed outsourced Provide corrective measures in place to minimize lawsuits in the routine maintenance contractors and all litigations though submitted 1.f Yes. future to mitigate the damages. to the Department, the service providers are liable for such claims as per contract. The Department has transferred the risk to the service providers. See Annexure E – total legal costs expanded by GPDRT for periods 1 Provide legal costs involved in defending the Department against the April 2018 to 31 March 2019 and 1 April 2019 to 30 September 2019 1.g Yes. claim. – if required the actual BAS printout for individual matters and their associated legal costs settled can be obtained from the Finance Unit. 87 88 Resolved Resolution No. Subject Details Response by the Department (Yes/No) Provide details of the Department materially underspending the budget by R359 603 000 on the following GAUTENG PROVINCIAL GOVERNMENT | 2. a programmes: administration, transport infrastructure, · Detailed report submitted to SCOPA as requested. Yes. transport operations and transport regulations, as disclosed in the appropriation statement. The Accounting Officer during the 2018/19 financial year resigned in What remedial action will be taken against the Accounting March 2019. The Accounting Officer who will be permanently appointed 2. b Yes. Officer for the underspending of the budget? in the Department will be contractually required to effectively manage the Department’s budget. Provide details of the impact of the underspending of 2.c R359,603,000 on service delivery, and corrective steps the Detailed report submitted to SCOPA as requested. Yes. department intends to take.

DEPARTMENT OFROADSANDTRANSPORT Provide details of contracts (including supplier name, service description and contract value) which were extended 3.a or modified without the approval of a properly delegated Detailed report submitted to SCOPA as requested. Yes. official, as required by section 44 of the PFMA and treasury regulations 8.1 and 8.2. Provide details of remedial action the Department intends to take on the extension or modifying of the contract 3.b SCOPA Preliminary Questions without the approval of a properly delegated official, as re- Detailed report submitted to SCOPA as requested. Yes. Emanating from Report on the Audi- quired by section 44 of the PFMA and treasury regulations tor-General’s Report on the Financial 8.1 and 8.2. Statements and Performance Infor- Provide the Committee with the breakdown of all irregular mation of the Department of Roads 4 expenditure amounting R4 471 314 000 incurred due to A detailed breakdown provided to SCOPA as requested. Yes. and Transport for the Year Ended 31 legacy contracts from prior years March 2019 (DRT) The Department’s root causes for reporting irregular expenditure emanates from its legacy obligations associated with past irregular contracts. The Dept. has not incurred irregular expenditure on procurement relating to the financial year under review. The Departments focused approach around the prevention, detection and correction of any forms of non-compliance with laws and regulations has strengthened its prospects of obtaining a clean audit by eliminating any form of irregular expenditure. The following are some of the measures implemented:

• The adoption and implementation of a Department Anti-Fraud and Why did management not adequately implement preven- 5 Corruption Yes. tive and detective controls to prevent irregular expenditure policy and related procedures, • The adoption and implementation of strict SCM policies and procedures • The vetting of suppliers and SCM officials • The continuous training and development of SCM officials, • The use of probity auditors to scrutinize the tender process.

Even though there have been notable improvements, that Department continuously monitoring progress around compliance with laws and regulations with the focus on improving and adjusting the internal control environment. GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 89 88 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

Resolved Resolution No. Subject Details Response by the Department (Yes/No) As detailed in the above response to question 5, the Department has not What investigations have been undertaken regarding irregular expenditure report- incurred any new irregular expenditure for the 2018/2019 financial year. The 6 ed in the 2018/2019 financial year and what disciplinary measures have been/ Yes. Department’s root causes for reporting irregular expenditure emanates from its will be taken against those responsible for irregular expenditure? legacy obligations associated with past irregular contracts.

The reported non-compliance emanated from a lapse in effective communication between the Department’s bus subsidy and supply chain management units. The extension of the bus subsidy contracts was undertaken by the bus subsidy unit and ultimately approved by the Head of Department with the proviso that concurrence with the Gauteng Provincial Treasury should be sort Provide details for management not to have adequately reviewed and monitored on the approval of the extension. The latter communication was only presented 7. a Yes. compliance with all applicable laws and regulations. to the Department’s Supply Chain Management unit after the extension had only taken effect which triggered the non-compliance which required the prior approval of the extension from GPT. The Department has resolved to improve on its internal communication strategies and ensure the effective and timeous consultation and communication of key decision-making processes.

Provide details of the various investigations into the allegations of possible unethical behaviour, misuse of assets and matters of procurement and contract management including: a. The allegation b. The financial value of the irregularity

GAUTENG PROVINCIAL GOVERNMENT | SCOPA Preliminary Questions c. The designation of the accused Emanating from Report on the d. The status of the investigation Auditor-General’s Report on 8 e. The action taken, including recovering losses incurred, because of the investi- A detailed breakdown provided to SCOPA as requested. No. the Financial Statements and gations Performance Information of f. The report of the investigation if the investigation has been concluded the Department of Roads and g. Provide a breakdown of the list of new investigations into allegations of Transport for the Year Ended 31 possible unethical behaviour, misuse of assets and matters of procurement and March 2019 (DRT) contract management as of the 30th September 2019 and a progress report on their finalisation.

What actions have the Department taken, in partnership with the Department of The Department has always been compliant to all GPG Operating System

DEPARTMENT OFROADSANDTRANSPORT 9.a e-Government to find solutions to information technology controls deficiencies to requirements. The department is compliant to Operating System requirements Yes. resolve operating systems problems? as per GPG standards. Given that Business Continuity Management is a program that requires sufficient staffing who are specialists in the discipline, the Department does 9.b Why was there lack of Business Impact Assessment (BIA)? No. not have competent officials to roll-out the program. This resulted in the Department not having identified their BIA.

Given that Business Continuity Management is a program that requires sufficient staffing who are specialists in the discipline, the Department does 9.c Why was there an inadequate Business Recovery Plan (BRP)? No. not have competent officials to roll-out the program. This resulted in the Department not having identified their BRP.

To mitigate high risk to the Department, provide the Committee with a progress All ICT applications/systems have been migrated to SITA. All departmental 9.d Yes. report on the implementation of the disaster recovery plan. applications have been fully migrated to SITA. 89 90 Resolved Resolution No. Subject Details Response by the Department (Yes/No)

SCOPA Preliminary Questions Provide an updated report on progress made in the implementation of the GAUTENG PROVINCIAL GOVERNMENT | 10 Detailed report submitted to SCOPA as requested. Yes. Emanating from Report on the 2017/18 SCOPA resolutions. Auditor-General’s Report on the Financial Statements and Performance Information of Provide a detailed explanation in cases where there are recurring findings Provide a detailed explanation in cases where there are recurring findings as per the Department of Roads and as per the 2018/19 report by the Auditor General compared to previous 11 the 2018/19 report by the Auditor General compared to previous financial years, Yes. Transport for the Year Ended 31 financial years, also indicate steps you will take to address these recur- also indicate steps you will take to address these recurrences. March 2019 (DRT) rences DEPARTMENT OFROADSANDTRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 91 90 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

Resolution Resolved Subject Details Response by the Department No. (Yes/No) The Department must provide the Committee with a progress report detailing the status of the plan of overhauling the methods 1 Detailed report submitted to SCOPA as requested. No. of processing lawsuits every quarter and up until finalisation thereof.

The Department must provide the Committee with a progress report detailing the effectiveness of the Outsourced Routine 2 Maintenance Services to maintain the provincial roads daily in Detailed report submitted to SCOPA as requested. Yes. order to minimise lawsuits every quarter and continuing until the end of June 2020.

The Department of Transport initiated a process to develop a Public Transport Policy for South Africa in January 2017 and a consultancy firm called “Future of Transport Transformation Planning Engineering and Management” was appointed to carry out the work. Currently, all subsidised bus contracts are paid based on the Division of Revenue Act (DORA) published annually. The Department of Transport circulated a draft policy The Department must provide the Committee with a progress re- document in November 2019 asking for public comments and workshop with Provinces is port detailing the status of issues pertaining to a national policy expected to be held in 2020. change or overall funding shortfall which have been addressed at 3 SCOPA Resolutions emanating The current draft policy highlights the following: No. the level of the National Department of Transport, and the report from Scopa Oversight Report on The draft subsidy policy concludes that it will cost a lot more relative to the status quo. must be provided every quarter and continuing until the end of the Report of the Auditor-General However, an argument is made that society and the economy are already paying much June 2020. of South Africa (AGSA) on the more for the inefficient and ineffective public transport system. In essence, society and Financial Statements and Perfor- the economy are subsidising the current inefficiencies. The subsidy policy, therefore, aims

GAUTENG PROVINCIAL GOVERNMENT | mance Information to the Gauteng to reduce the total cost of transport to society and the economy. Overall, implementing Provincial Legislature on Vote No. the policy should result in society and the economy paying less for transport. 9: Gauteng Department of Roads and Transport for the Year Ended 31 March 2019 That the Department must provide the Committee with a progress 4 report detailing the status of the reviewing of the organisational Detailed report submitted to SCOPA as requested. No. structure every quarter and continuing until finalisation thereof. The Department must provide the Committee with a progress 5 report detailing the status of the Open Tender” Process every Progress report submitted to SCOPA as requested. No. quarter and continuing until finalisation thereof. The Department must develop a checklist for all legislation The Department has various checklists for different stages and types of procurement. applicable as a mechanism to use in order to monitor compliance

DEPARTMENT OFROADSANDTRANSPORT Also, the Department has SOP within the SCM business unit. The effect of this can be 6 and provide the Committee with a progress report detailing the Yes. gauged with the reduction of audit queries over the financial years. GPT also provides effectiveness of the checklist every quarter and continuing until support and compliance reviews quarterly. the end of June 2020. The Department must provide the Committee with a progress 7 report detailing the status of the tenders for the bus subsidy con- Detailed progress report submitted to SCOPA as requested. No. tracts every quarter and continuing up until finalization thereof. The Department must provide the Committee with the quarterly 8 progress report detailing the status of investigations and within Detailed progress report submitted to SCOPA as requested. No. 30 days of finalisation thereof. 91 92 Resolution Resolved Subject Details Response by the Department No. (Yes/No)

The Department has decided to outsource the development of the Business Continuity

GAUTENG PROVINCIAL GOVERNMENT | Plan (BCP) and Disaster Recovery Plan (DRP), due to a lack of expertise in the Department. That the Department must provide training to existing IT staff to be However, this could not be implemented in the current financial year due to financial able to roll-out the Business Continuity Management program and constraints. This has been prioritised for the next financial year 2020-21 and budget 9 provide the Committee with a progress report detailing the status allocation has been secured. Furthermore, it will be aligned to the review of the Depart- No. SCOPA Resolutions emanating of the roll-out of the training every quarter and continuing up until mental Service Delivery Model, organisational structure and the 2020-2025 strategic plan from Scopa Oversight Report on completion thereof. of the 6th Administration. the Report of the Auditor-Gen- The IT training programme will commence after the approval of the BCP and the DSP. eral of South Africa (AGSA) on the Financial Statements and Performance Information to the Gauteng Provincial Legislature on The Department has decided to outsource the development of the Business Continuity Vote No. 9: Gauteng Department Plan (BCP) and Disaster Recovery Plan (DRP), due to a lack of expertise in the Department. of Roads and Transport for the However, this could not be implemented in the current financial year due to financial DEPARTMENT OFROADSANDTRANSPORT The Department must develop and implement the Business Continu- constraints. This has been prioritised for the next financial year 2020-21 and budget Year Ended 31 March 2019 ity Plan (BCP) and Disaster Recovery plan and provide the Committee 10 allocation has been secured. Furthermore, it will be aligned to the review of the Depart- No. with a progress report detailing the status of the approval every mental Service Delivery Model, organisational structure and the 2020-2025 strategic plan quarter and continuing up until the finalisation thereof. of the 6th Administration. The IT training programme will commence after the approval of the BCP and the DSP.

SCOPA Preliminary Questions Emanating from Report on the Audi- 12 November SCOPA PUBLIC HEARING: SCOPA tor-General’s Report on the Financial Statements and Performance Department appeared before SCOPA and presented responses to all the Preliminary Yes. 2019 Preliminary Questions Information of the Department of Roads and Transport for the Year Questions posed by the Committee. Ended 31 March 2019 (DRT)

The MEC is requested to provide the following information to SCOPA as it relates to the unauthorized expenditure, irregular expenditure as well as fruitless and wasteful Expenditure: 1. Provide the Department’s (and its entities where applicable) detailed trend analysis of the findings by the Auditor General of South Africa (AGSA) on the listed expenditure management areas. The trend analysis must be based on the audit outcomes of the period of Focus Intervention Study (FIS) the 5th Term, i.e. the 5 Financial Years of 2014/15 to 2018/19. Questionnaire for the Depart- 2. Provide a list of what has been established as the root causes for The Department and its entities submitted detailed reports in line with the FIS Question- SCOPA FIS ment of Roads and Transport, Yes. such findings. naire requirements. g-FleeT Management and 3. Provide details of measures the department (and entities) has tak- Gautrain Management Agency en in that period (2014/15 to 2018/19) to address such root causes. Also indicate the impact of each intervention over the period. 4. Provide the list of the findings which are recurring as per the 2018/19 audit, and proposed intervention plan the department (and entities) has adopted in the current financial year (2019/20) to address recurrences. GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 93 9. INTERNAL CONTROL UNIT

• In accordance with the requirements of the PFMA, and best practice, the Department has a fully resourced Internal Audit function. • The Internal Audit performed its audits according to the approved Internal Audit coverage plan. The Plan was based on high-risk areas as per the Strategic risk profile. • The Head of the Department was appointed and he is responsible for Strategic and administration support to the Internal Audit function. • There is an on-going process for identifying, evaluating and managing the significant risks faced by the Department to prioritise high risk and ensure adequate controls are designed and are tested on regular basis for effectiveness. • All planned internal audits were completed during the year under review. • Administrative policies were reviewed, approved and communicated. • Quarter audit reports were presented to the audit committee for independent oversight. • Risk management action plans were closely monitored for implementation.

92 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 93 10. INTERNAL AUDIT AND AUDIT COMMITTEES

INTERNAL AUDIT

Gauteng Audit Services (GAS) provides internal audit services to all GPG Departments. The objective of GAS is to promote sound corporate governance in the province by ensuring an effective internal control environment.

Key Activities of Internal audit Risk-based Internal Audit Plans were developed by GAS and approved by the respective Departmental Audit Committees which exercise oversight over the activities of GAS. The activities are as follows: • Risk and compliance audit; • Performance Audit; and • Computer Audit. • Information Technology Risk Assessment.

Specify summary of audit work done • Thirteen (13) Risk, Compliance, Performance and Computer audits. During the last quarter of the 2019/2020 financial year, Gauteng Audit Services presented the risk-based three-year rolling internal audit plan for the Gauteng Department of Roads and Transport to the audit committee, having discussed with the Accounting Officer and recommended for approval by the Audit Committee. The Internal Audit Plan was approved by the audit committee for implementation from 1st April 2020

94 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 95 94 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

The table below discloses relevant information on the audit committee members:

If an internal, Internal or external No of meetings Name Qualifications position Date appointed Date resigned member attended in the department

• Africa’s Directors Programme • Master of Business Administration • Master of Commerce in International and Domestic Taxation • B. Accounting Science (Hons) Stanley Ngobeni • B. Com- Accounting External - 01 March 2019 Current 4 • Higher Diploma in Computer Auditing • Registered Government Auditor (SA) • Professional Accountant (SA) • Professional Internal Auditor (SA)

• Chartered Accountant (SA) • B. Com (Hons) George Higgins • B. Com External - 01 September 2016 Current 5 • Higher Diploma in Auditing • Registered Auditor

• Chartered Accountant (SA) • B. Com GAUTENG PROVINCIAL GOVERNMENT | • B. Acc Given Sibiya External - 01 March 2019 Current 4 • Postgraduate Diploma in Accountancy • Certificate in the Theory and Practice of Auditing • ABASA Executive leadership development programme DEPARTMENT OFROADSANDTRANSPORT 95 11. PRIOR MODIFICATIONS TO AUDIT REPORTS

Nature of qualification, disclaimer, adverse Financial year in which it first arose Progress made in clearing / resolving the matter opinion and matters of non-compliance

N/A N/A N/A

96 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 97 12. AUDIT COMMITTEE REPORT

GAUTENG PROVINCIAL GOVERNMENT (GPG)

Report of the Audit Committee – Cluster 04

Gauteng Department of Roads and Transport We are pleased to present our report for the financial year ended 31 March 2020.

Audit Committee and Attendance The Audit Committee consists of the external Members listed hereunder and is required to meet a minimum of at least two times per annum as per provisions of the Public Finance Management Act (PFMA). In terms of the approved Terms of Reference (GPG Audit Committee Charter), five meetings were held during the current year, i.e. three meetings to consider the Quarterly Performance Reporting (financial and non-financial) and two meetings to review and discuss the Annual Financial Statements and the Auditor-General of South Africa’s (AGSA) Audit and Management Reports.

Non-Executive Members Name of Member Number of Meetings attended Mr. Stanley Ngobeni (Chairperson) 04 (Appointed 01 March 2018) Mr. Vishnu Naicker (Chairperson) 01 (Appointed 11 August 2020) Mr. George Higgins 05 (Appointed 01 September 2016) Ms. Given Sibiya 04 (Appointed 01 March 2018-term expired) Ms. Mmathebe Moja 01 (Appointed 11 August 2020)

Executive Members In terms of the GPG Audit Committee Charter, officials listed hereunder are obliged to attend meetings of the Audit Committee:

Compulsory Attendees Number of Meetings attended Mr. Makhukhu Mampuru (Accounting Officer) 04 Mr. Sanele Zondo (Chief Financial Officer) 03 Mr. Lesibana Fosu (Acting Chief Financial Officer) 01 Ms. Delicia Kgage (Chief Risk Officer) 05 Mr. Kweyama Velile (Chief Audit Executive) 05 The Audit Committee is satisfied that the Department adhered to the provisions of the GPG Audit Committee Charter.

96 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 97 The members of the audit committee held meetings with the accounting cerns raised by Internal Audit during the year were raised by the AGSA, officer, senior management of the Department, internal audit function The Audit Committee is of the view that management should continue and the Auditor-General of South Africa (AGSA) collectively and individ- strengthening the internal control environment with the development and ually, on matters related to governance, internal control and risk in the implementation of systems across the internal control universe. Manage- Department, throughout the reporting period. The Chairperson also held ment should also improve its financial reporting controls to ensure that a meeting with the honourable member of the executive committee MEC risks of material misstatement to the financial statements are minimised. Mr. J Mamabolo to report on governance, internal control, risk, performance and financial information and other relevant matters concerning Information and Communication Technology (ICT) Governance the Department. The Department made some progress in implementing the recommendations from 2018/19. The Audit Committee notes the Auditor-General and Events after the reporting date Internal Audit report around ICT governance, business continuity dupli- The Covid19 pandemic impacted on the audit committee’s operations af- cate user accounts on the e-NaTIS application. The Department has been ter the financial year-end of 31 March 2020. Social distancing, lockdown instructed to ensure that significant attention is allocated to resolving regulations together with the amended legislative timeframes for annual these deficiencies in the next financial year. report submission impacted the operations of the audit committee, internal audit and external audit on the timeframes when annual financial Internal Audit statements and annual performance information would be prepared by The Accounting Officer is obliged, in terms of the PFMA, to ensure that the departments, desk reviewed by the Office of the Provincial Accoun- the Department has a system of internal audit under the control and di- tant-General and audited by the AGSA. rection of the Audit Committee. In the case of the Gauteng Provincial Government (GPG), the Internal Audit Function is shared amongst Entities The audit committee welcomed initiatives by the Department, internal and departments in the Province. audit, external audit and audit committee members assisted by Gauteng Provincial Treasury to go digital to continue with the compilation of the The Internal Audit team managed to execute and complete substantial annual report, desk reviews, audit processes and oversight responsibil- original approved risk-based audit projects within the allocated budget ities. hours and time-frames. The Audit Committee is satisfied that the Internal Audit plan represents a clear alignment with the key risks, has adequate Audit Committee Responsibility information systems coverage, and a good balance across the different The Audit Committee reports that it has complied with its responsibilities categories of audits, i.e. risk-based, mandatory, performance, computer arising from section 38(1)(a) of the PFMA and Treasury Regulation 3.1.13. and follow-up audits. The coordination of efforts between internal audit The Audit Committee also reports that it has adopted appropriate formal and AGSA have been enhanced further during the year in the provision terms of reference as its Audit Committee Charter, has regulated its af- of assurance services. The Committee believes this is an important step fairs in compliance with this Charter and has discharged all its responsi- towards a fully effective combined assurance system. bilities as contained therein. It was noted that a Quality Assurance Review (external assessment) was The effectiveness of internal control performed by an external independent reviewer during the year and In- The audit committee acknowledges management’s efforts to strength- ternal Audit was assessed to be Generally Conformant with the Interna- en internal controls in the Department. From the various reports of the tional Standards for Professional Practice of Internal Auditing. internal auditors, management and audit reports of the Auditor General of South Africa, it was noted that matters were reported indicating defi- The Audit Committee will continue to monitor the capacity and the re- ciencies in the system of internal controls in areas pertaining to financial sources allocated to the Internal Audit function. reporting, asset management, reporting on pre-determined objectives and compliance with laws and regulations and in some cases resulted Risk Management on repeat findings. Progress on the departmental risk management was reported to the Au- dit Committee on a quarterly basis. The Audit Committee is of the opinion In some instances, the system on internal control for the period under that the department’s risk management maturity state has advanced to an review was found to be adequate but ineffective and there is room for intermediary level with further identified aspects of its risk management improvement in so far as addressing internal audit findings timeously and strategy still to be implemented. Management should continue to take implementation of consequence management. Some of the issues/con- full responsibility for the entire Enterprise Risk Management Process and

98 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 99 continue to support the Chief Risk Officer to even further enhance the committee meeting held on 19 June 2020 and recommended them performance of the Department. The Audit Committee would like to see for audit. the continued improvement in the maturity of risk management. • Audit Committee reviewed the draft annual financial statements prepared by the Department before the submission of the annual Performance Management financial statements to the external auditors for audit the audit The review of effectiveness and functionality of the performance man- committee meeting held on 19 June 2020 and recommended them agement system (which includes analysis of management prepared for audit. quarterly performance reports and related internal audit reports) by Audit • Reviewed and discussed the following matters relating to the Committee revealed a need to strengthen current performance manage- audited Annual Financial Statements to be included in the Annual ment and reporting system. Report, with the AGSA and the Accounting Officer: » Significant financial reporting judgements and estimates The quality of quarterly reports submitted in terms of the PFMA contained in the annual financial statements. and the Division of Revenue Act » Clarity and completeness of disclosures and whether The Audit Committee reviewed the quality, accuracy, uselessness, reli- disclosures made have been set properly in context. ability and appropriateness of quarterly and annual financial reporting » Quality and acceptability of, and any changes in, account- and the Audit Committee is satisfied with the content and quality of fi- ing policies and practices. nancial and non-financial quarterly reports prepared and submitted by » Compliance with the Modified Cash Standard and the the Accounting Officer of the department during the year under review PFMA requirements. and confirms that the reports were in compliance with the statutory re- » Significant adjustments and/or unadjusted differences porting framework. The Audit Committee would like to commend the De- resulting from the audit. partment for reporting monthly and quarterly to Treasury as is required » Reflection of unusual circumstances or events and by the PFMA. The Audit Committee recommends that the Department management’s explanation for the accounting treatment should fully comply with section 40(1) of the PFMA, in so far as man- adopted. agement’s review and monitoring of financial reports and performance » Reasons for budget variations information reports. » Reasons for major year-on-year fluctuations. » Asset valuations and revaluations. Compliance with the relevant laws and regulations » Calculation and levels of general and specific provisions. A number of non-compliance with the enabling laws and regulations » The basis for the going concern assumption, including any were noted by the Audit Committee, Management, Internal Audit and financial sustainability risks and issues. AGSA during the year. As result, the Audit Committee recommended the development and implementation of an effective compliance manage- • Reviewed the Audit Report of the AGSA; ment system with an objective of addressing the issues of non-compli- • Reviewed the AGSA’s Management Report and Management’s ance with laws and regulations. response thereto; • Reviewed the Department’s compliance with legal and regulatory Forensic Investigations provisions; and Investigations into alleged financial irregularities, financial misconduct • Reviewed significant adjustments resulting from the audit. and fraud were completed during the year under review. Certain investigations are still in the process of finalisation. Various measures were The Audit Committee notes the finding regarding the material adjust- recommended including taking action against the identified officials and ment related to the treatment of Irregular Expenditure and Fruitless and this was in the process of finalisation. The recommendations are at vari- Wasteful Expenditure to the annual financial statements and accepts ous stages of implementation. that the disclosure is appropriate.

Evaluation of Annual Financial Statements The Audit Committee concurs with and accepts the AGSA’s conclusions The Audit Committee undertook the following activities related to Annu- on the Annual Financial Statements and is of the opinion that the audit- al Financial Statements: ed Annual Financial Statements be accepted and read together with the • Audit Committee reviewed the draft annual financial statements report of the AGSA. prepared by the Department before the submission of the annual financial statements to the external auditors for audit the audit

98 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 99 Evaluation of the Annual Report Conclusion The Audit Committee undertook the following activities related to the The Audit Committee strongly recommends that the department should annual report: prioritise root-cause identification and analysis, implementation of con- • Audit Committee evaluated the final draft Annual Report (including sequence management, and regular monitoring of the audit action plans performance report) the audit committee meeting held on 16th for both internal and external audit in order to achieve the required effec- October 2020 and noted the achievement for the year under review tiveness in governance, accountability and clean administration. and recommended it. Furthermore, The Audit Committee is encouraged and appreciates an im- Audit Improvement Plan for 2018/19 provement in the communication between the Accounting Officer, Senior The Audit Committee reviewed and monitored the implementation of Management, the AGSA and the Internal Audit which if continued can prior year audit findings on quarterly basis . It is the view of the Audit strengthen the Corporate Governance initiatives within the Department. Committee that there is a room for improvement in this regard in so far as timeous implementation and resolving findings by the external auditors as well as addressing the root-causes relating to the weakness identified by the external auditors. The Audit Improvement plan for 2019/2020 will be monitored from on a quarterly basis from Q2.

One-on-One Meeting with the Accounting Officer The Audit Committee has met with the Accounting Officer for the Depart- ………………………………………… ment to address unresolved issues. Mr Vishnu Naicker Chairperson of the Audit Committee One-on-One Meetings with the Executive Authority Johannesburg The Audit Committee has met with the Executive Authority for the De- 16 October 2020 partment to apprise the MEC on the performance of the Department.

100 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 101 100 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 101 PART D HUMAN RESOURCE MANAGEMENT

102 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 103 1. INTRODUCTION

The information contained in this part of the annual report has been prescribed by the Minister for the Public Service and Administration for all departments in the public service.

2. OVERVIEW OF HUMAN RESOURCES

Organisational Structure Review The restructuring advocacy process will be facilitated by a change man- In the new administration 2020/2025, the Gauteng Department of Roads agement plan which will incorporate elements of roadshows, smart and Transport will embark on an organisational restructuring process platform communications, Departmental engagements with labour and to align the Structure to the organisational five-year strategy. This will relevant stakeholders to support a smooth transition. The critical ele- enable the Department to acquire the key competencies and capabili- ments of engagements reorganised structure, Service Delivery Model, ties firstly to contribute to the priorities of the National and Provincial business processes will be completed by the end of 2020/21. Once the Government, secondly, to deliver on its mandate and finally to ensure approval from the Minister of Public Service on the restructured organ- effective and efficient service delivery to the people of Gauteng. isational organogram is received, the filling of identified, critical posts will be undertaken. The restructuring process is informed by the Public Service Regulation 2016 as prescribed and the manifesto of the new administration. . The Aligned to the reorganised structure is the re-engineering of the business restructuring process commenced in the financial year 2019 and is envis- process by 2023 which will expedite the Department’s integration of an aged to be completed by the end of the financial year 2020/2021. e-services platform for administrative functions and front-line services functions by 2025. The Department’s restructuring process will focus on the following critical areas: the Organisational Operational Model, complemented by COVID-19 Compliant Workplace Readiness and Workforce Re-In- the Service Delivery Model to optimise operational effectiveness and tegration Solutions efficiencies. The work-study review will update job profiles and grades The Department recognizes that every person has the right to a safe and which will contribute to labour peace between employer and organised healthy working environment. In an endeavour to ensure a healthy and labour and respond to the call from the National Government for an effi- safe working environment, the Department continuously monitored the cient and capable public service. This will be completed in the financial implementation of Safety, Health, Environment, Risk and Quality (SHERQ) year 2020/21. which is an integrated management system of Occupational Health and Safety, Environmental Management, Risk Management and Quality

102 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 103 Management. Its sole purpose is to strengthen ownership, accountabili- Employee and Organisational Wellness: ty, improve transparency and measurement of Programme achievement, strengthen resource mobilization, improve implementation and enhance • Occupational Health and Safety (OHS) performance. The Department has appointed some employees as Safety, Health and Environment (SHE) representatives in line with OHS COVID -19 required the Department to provide and maintain a working requirements. The following training was the said officials were environment that is safe and without risk to health and safety of em- offered an opportunity to be trained in Hazard Identification Risk ployees, clients and visitors. The Department identified hazards and Assessment (HIRA), Accident investigation, Fire fighting, First Aid, risks which could adversely affect the health and safety of its employ- Emergency preparedness, Occupational Health and Safety training ees. Therefore, it put control measures in place to mitigate and eliminate for Supervisors, ISO 9001: 2015 Quality Management System, ISO identified risks, provided information, training on SHERQ management 14001: 2015 Environmental Management System and ISO 45OO1 issues and the issuance of Personal Protective Equipment (PPE) to em- Occupational Health and Safety. ployees. Standard Operating Procedures (SOP’s) were developed to conduct COVID-19 screening, testing and medical surveillance, occupational • Safety, Health, Environment, Risk and Quality (SHERQ) hygiene surveys and audits. • SHERQ Training conducted The Department co-ordinated the following SHERQ training: Revised Gauteng Provincial Government Policy on the Perfor- » g-FleeT Bedfordview office; mance Management and Development Systems (PMDS) » Randfontein TOLAB; The Gauteng Provincial Government approved the new policy on Perfor- » Koedoespoort Laboratory; and mance Management and Development System for Employees on salary » Temba DLTC. level 1-12 on the 8th March 2019 and requested Departments to ensure the implementation of the policy with effect from1 April 2019. • SHERQ Audits and Inspections The Department has conducted SHERQ audit and site inspec- To ensure the implementation of the policy, the Department con- tions in the following offices: ducted awareness sessions for GDRT and g-FleeT employees on lev- » g-FleeT (Ipeleng and Koedoespoort Offices) els 1-12, includIng coordinators. To strengthen the awareness ses- » Mabopane DLTC sions and assist with the understanding and application of the new » Temba DLTC policy, formal training by the National School of Government was » Randfontein TOLAB conducted. The training was aimed at clarifying the roles and re- » Koedoespoort Laboratory section sponsibilities of the Department with the focus on the following: » Koedoespoort Calibration plant section

• Improve individual performance; • GAS AUDIT • Promote accountability; The GAS audit was conducted and the following departmental • Ensure transparency; sites were sampled for inspection: • Emphasize and support developmental areas; and » Heidelberg Regional Office • Identify performance gaps. » Vereeniging Regional Office » Randfontein TOLAB The new PMDS policy was implemented with the new procedures and » Kliptown DLTC documentation across all employee levels. » Xavier DLTC » Derek Masoek Human Capital Development To develop and capacitate Departmental employees with identified skills • Financial Wellness Management in various training programmes, 1, 393 employees were trained. The vari- A total number of forty-one (41) DRT employees were trained on ous training conducted related to Occupational, Health and Safety, Ethics Financial Wellness by the National Credit Regulator (NCR), the Management, Transport, Roads and Administration Capacity Building. Credit Ombudsman and Ombudsman for the Medical Aid Scheme. Financial literacy workshops were also conducted in two (2) regions, Vereeniging and Krugersdorp.

104 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 105 • Health screening conducted The Department has conducted health screenings to assist employees with access to basic health care in the following regions: » Xavier; DLTC » Head Office; Regional office » Vereeniging; Regional office » g-FleeT Bedfordview office » Diagonal Street » Heidelburg Regional office » Benoni and Regional office » Bronkhorspruit Region office

3. HUMAN RESOURCES OVERSIGHT STATISTICS

3.1 Personnel related expenditure

TABLE 3.1.1 PERSONNEL EXPENDITURE BY PROGRAMME FOR THE PERIOD 1 APRIL2019 AND 31 MARCH 2020

Professional Personnel Total Personnel Training and Special Average Expenditure Programme Expenditure Expenditure Expenditure Services Personnel Cost per as a % of Total (R’000) (R’000) (R’000) Expenditure Employee (R’000) Expenditure (R’000)

Administration 334,184.00 181 ,839.00 0.00 0.00 54.40% 427,00

Gautrain 2,153,314.00 0.00 0.00 0.00 0.00% 0.00

Transport Infrastructure 2,159,347.00 279,580.00 0.00 0.00 12.90% 344,00

Transport Operations 2,226,733.00 26,654.00 0.00 0.00 1.20% 485,00

Transport Regulation 289,315.00 185,799.00 0.00 0.00 64.20% 340,00

Total as on Financial 7,162,893.00 673,872.00 0.00 0.00 9.40% 366,00 Systems (BAS)

104 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 105 TABLE 3.1.2 PERSONNEL COSTS BY SALARY BAND FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020 106

Personnel % of Total Salary Band Expenditure No. of Employees Average Personnel Cost Per Employee (R’000) Personnel Cost GAUTENG PROVINCIAL GOVERNMENT | (R’000)

Lower skilled (Levels 1-2) 36,092.00 5.20% 204 176,922.00

Skilled (Levels 3-5) 166,770.00 24.10% 642 256,766.00

Highly skilled production (Levels 6-8) 225,708.00 32.60% 543 415,669.00 DEPARTMENT OFROADSANDTRANSPORT Highly skilled supervision (Levels 9-12) 156,589.00 22.90% 211 751,607.00

Senior management (Levels 13-16) 56,527.00 8.20% 42 1,345,881.00

Contract (Levels 3-5) 406.00 0.10% 1 406.00

Contract (Levels 6-8) 5,912.00 0.90% 15 394,133.00

Contract (Levels 9-12) 11,070.00 1.60% 17 651,176.00

Contract (Levels >= 13) 1,672.00 0.20% 2 836,000.00

Periodical Remuneration 8,279.00 1.20% 29 285,483.00

Abnormal Appointment 9,945.00 1.40% 134 74,216.00

Total 680,972.00 98.40 1 840.00 370,093.00 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 107 106 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

TABLE 3.1.3 SALARIES, OVERTIME, HOME OWNERS ALLOWANCE AND MEDICAL AID BY PROGRAMME FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Salaries Overtime Home Owners Allowance Medical Aid Total Person- nel Cost per Programme Salaries as a Overtime as a HOA as a % Medical aid as Salary Band Amount (R’000 % of personnel Amount (R’000) % of personnel Amount (R’000) of personnel Amount (R’000) a % of person- (R’000) costs costs costs nel costs

Administration 199,100.00 250.60% 738.00 0.30% 9,048.00 13.90% 12,150.00 10.20% 245,836.00

Transport Infrastructure 322,267.00 315.70% 438.00 0.20% 18,755.00 15.40% 27,556.00 19.80% 418,833.00

Transport Operations 21,152.00 79.60% 0.00 0.00% 755.00 2.80% 1,564.00 5.90% 26,587.00

Transport Regulation 751.00 72.10% 0.00 0.00% 187.00 18.00% 15.00 1.40% 1,041.00

TOTAL 543,269.00 78.50% 1,176.00 0.20% 28,743.00 4.20% 41,284.00 6.00% 692,297.00 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 107 TABLE 3.1.4 SALARIES, OVERTIME, HOME OWNERS ALLOWANCE AND MEDICAL AID BY SALARY BAND FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020 108

Salaries Overtime Home Owners Allowance Medical Aid GAUTENG PROVINCIAL GOVERNMENT | Total Per- sonnel Cost Salary Band Medical aid Salaries as a Overtime as a HOA as a % per Salary Amount Amount Amount Amount as a % of % of person- % of person- of personnel Band (R’000) (R’000 (R’000) (R’000) (R’000) personnel nel costs nel costs costs costs

Skilled (Levels 1-2) 25,090.00 68.00% 28.00 0.10% 3,717.00 10.10% 4,244.00 11.50% 36 783,00

Skilled (Levels 3-5) 123,274.00 72.90% 411.00 0.20% 10,529.00 6.20% 16,442.00 9.70% 169 054,00 DEPARTMENT OFROADSANDTRANSPORT

Highly skilled production (Levels 6-8) 178,664.00 78.60% 549.00 0.20% 8,286.00 3.60% 15,221.00 6.70% 227 178,00

Highly skilled supervision (Levels 9-12) 133,740.00 81.80% 188.00 10.00% 4,393.00 2.70% 4,263.00 2.60% 163 493,00

Senior management (Levels 13-16) 48,098.00 83.40% 0.00 0.00% 1,283.00 2.20% 699.00 1.20% 57 670,00

Contract (Levels 3-5) 362.00 89.20% 0.00 0.00% 0.00 0.00% 0.00 0.00% 406,00

Contract (Levels 6-8) 4,738.00 76.50% 0.00 0.00% 187.00 3.00% 269.00 4.60% 6 195,00

Contract (Levels 9-12) 9,833.00 85.50% 0.00 0.00% 289.00 2.50% 58.00 0.50% 11 497,00

Contract (Levels >= 13) 1,347.00 78.00% 0.00 0.00% 60.00 3.50% 87.00 5.00% 1,726.00

Periodical Remuneration 8,279.00 99.20% 0.00 0.00% 0.00 0.00% 0.00 0.00% 8,349.00

Abnormal Appointment 9,945.00 100.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 9,945.00

Total 543,269.00 78.50% 1,176.00 0.20% 28,743.00 4.20% 41,284.00 6.00% 692,297.00 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 109 3.2 Employment and Vacancies

TABLE 3.2.1 EMPLOYMENT AND VACANCIES BY PROGRAMME AS ON 31 MARCH 2020

Number of posts on Vacancy Rate Number of posts Number of employees ad- Programme approved establish- (includes frozen filled ditional to the establishment ment posts)

01 Lower Skilled (Levels 1-2), Permanent 537,00 412,00 23,00 0,00

02 Skilled (Levels 3-5), Permanent 563,00 464,00 18,00 0,00

03 Highly Skilled Production (Levels 6-8), 754,00 573,00 24,00 16,00 Permanent

04 Highly Skilled Supervision (Levels 9-12), 304,00 185,00 39,00 17,00 Permanent

05 Senior Management (Levels >= 13), 49,00 40,00 18,00 0,00 Permanent

11 Contract (Levels 3-5), Permanent 0,00 0,00 0,00 0,00

12 Contract (Levels 6-8), Permanent 16,00 16,00 0,00 16,00

13 Contract (Levels 9-12), Permanent 17,00 17,00 0,00 17,00

14 Contract (Levels >= 13), Permanent 0,00 0,00 0,00 0,00

Total 2 240,00 1 674,00 25,00 33,00

TABLE 3.2.2 EMPLOYMENT AND VACANCIES BY SALARY BAND AS ON 31 MARCH 2020

Number of posts on Number of posts Number of employees ad- Salary band approved establish- Vacancy Rate filled ditional to the establishment ment

Lower skilled (Levels 1-2), Permanent 537,00 412,00 23,00 0,00

Skilled (Levels 3-5), Permanent 563,00 464,00 18,00 0,00

Highly skilled production (Levels 6-8), 770,00 573,00 26,00 16,00 Permanent

Highly skilled supervision (Levels 9-12), 321,00 185,00 42,00 17,00 Permanent

Senior management (Levels 13-16), Perma- 49,00 40,00 18,00 0,00 nent

Total 2 240,00 1674,00 25,00 33,00

108 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 109 TABLE 3.2.3 EMPLOYMENT AND VACANCIES BY CRITICAL OCCUPATIONS AS ON 31 MARCH 2020

Number of Number of employ- posts on Number of Critical Occupation Vacancy Rate ees additional to approved es- posts filled the establishment tablishment

Administrative Related, Permanent 17.00 11.00 35.30 0.00

All Artisans In The Building Metal Machinery Etc., Permanent 2.00 2.00 0.00 0.00

Artisan Project And Related Superintendents, Permanent 6.00 0.00 100.00 0.00

Building And Other Property Caretakers, Permanent 1.00 1.00 0.00 0.00

Bus And Heavy Vehicle Drivers, Permanent 1.00 1.00 0.00 0.00

Cleaners In Offices Workshops Hospitals Etc., Permanent 5.00 3.00 40.00 0.00

Client Inform Clerks (Switchb Recept Inform Clerks), Permanent 2.00 1.00 50.00 0.00

Communication And Information Related, Permanent 3.00 3.00 0.00 0.00

Computer Programmers., Permanent 2.00 1.00 50.00 0.00

Computer System Designers And Analysts., Permanent 5.00 0.00 100.00 0.00

Finance And Economics Related, Permanent 5.00 3.00 40.00 0.00

Financial And Related Professionals, Permanent 4.00 4.00 0.00 0.00

Financial Clerks And Credit Controllers, Permanent 8.00 8.00 0.00 0.00

Human Resources & Organisat Developm & Relate Prof, Permanent 4.00 3.00 25.00 0.00

Human Resources Clerks, Permanent 5.00 5.00 0.00 0.00

Human Resources Related, Permanent 12.00 8.00 33.30 0.00

Information Technology Related, Permanent 1.00 1.00 0.00 0.00

Legal Related, Permanent 3.00 0.00 100.00 0.00

Library Mail And Related Clerks, Permanent 4.00 3.00 25.00 0.00

Light Vehicle Drivers, Permanent 22.00 12.00 45.50 0.00

Material-Recording And Transport Clerks, Permanent 1.00 1.00 0.00 0.00

Messengers Porters And Deliverers, Permanent 3.00 2.00 33.30 0.00

Motor Vehicle Drivers, Permanent 1.00 1.00 0.00 0.00

Other Administrative & Related Clerks And Organisers, Permanent 104.00 83.00 20.20 0.00

Other Administrative Policy And Related Officers, Permanent 18.00 13.00 27.80 0.00

Other Occupations, Permanent 2.00 2.00 0.00 0.00

Secretaries & Other Keyboard Operating Clerks, Permanent 12.00 10.00 16.70 0.00

Senior Managers, Permanent 8.00 3.00 62.50 0.00

Trade Labourers, Permanent 14.00 14.00 0.00 0.00

Total 275.00 199.00 27.60 0.00

110 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 111 3.3 Filling of SMS Posts

TABLE 3.3.1 SMS POST INFORMATION AS ON 31 MARCH 2020

Total number Total number Total number of % of SMS posts % of SMS posts, SMS Level of funded SMS of SMS posts SMS posts filled filled vacant posts vacant Director-General/ Head of Depart- 1 0 0 1 100 ment Salary Level 16 (MEC) 1 1 100 0 0 Salary Level 15 4 2 50 2 50 Salary Level 14 10 7 70 3 30 Salary Level 13 33 30 91 3 9 Total 49 40 82 9 18

TABLE 3.3.2 SMS POST INFORMATION AS ON 30 SEPTEMBER 2018

Total number Total number Total number of % of SMS posts % of SMS posts, SMS Level of funded SMS of SMS posts SMS posts filled filled vacant posts vacant Director-General/ Head of Department 1 1 100 0 0 Salary Level 16 (MEC) 1 1 100 0 0 Salary Level 15 4 3 75 1 25 Salary Level 14 9 7 78 2 22 Salary Level 13 3 28 90 3 10 Total 48 40 87 6 13

TABLE 3.3.3 ADVERTISING AND FILLING OF SMS POSTS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Total number Total number Total number of % of SMS posts % of SMS posts SMS Level of funded SMS of SMS posts SMS posts filled filled vacant posts vacant Director-General/ Head of Department 1 0 0 0 0 Salary Level 16 (MEC) 1 1 100 0 100 Salary Level 15 4 2 100 2 100 Salary Level 14 10 7 70 3 30 Salary Level 13 33 30 91 3 9 Total 49 40 82 9 18

110 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 111 TABLE 3.3.4 REASONS FOR NOT HAVING COMPLIED WITH THE FILLING OF FUNDED VACANT SMS. ADVERTISED WITHIN 6 MONTHS AND FILLED WITHIN 12 MONTHS AFTER BECOMING VACANT FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Reasons for vacancies not advertised within six months

The Department is currently in the process of restructuring and realigning its organisational structure

Reasons for vacancies not filled within six months

The Department is currently in the process of restructuring and realigning its Organisational structure. Once the structure is finalized, all critical posts will be filled through the recruitment process.

TABLE 3.3.5 DISCIPLINARY STEPS TAKEN FOR NOT COMPLYING WITH THE PRESCRIBED TIMEFRAMES FOR FILLING SMS POSTS WITHIN 12 MONTHS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Reasons for vacancies not advertised within six months

112 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 113 3.4 Job Evaluation

TABLE 3.4.1 JOB EVALUATION BY SALARY BAND FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Num- % of Posts Upgraded Posts downgraded ber of Number posts posts on Salary band of Jobs evaluated approved Evaluated by salary % of % of establish- bands Number posts Number posts ment evaluated evaluated

Lower skilled (Levels 1-2) 537,00 0,00 0,00 0,00 0,00 0,00 0,00 Skilled (Levels 3-5) 563,00 0,00 0,00 0,00 0,00 0,00 0,00 Highly skilled production (Levels 6-8) 770,00 0,00 0,00 0,00 0,00 0,00 0,00 Highly skilled supervision (Levels 9-12) 321,00 0,00 0,00 0,00 0,00 0,00 0,00 Senior Management Service Band A 33,00 0,00 0,00 0,00 0,00 0,00 0,00 Senior Management Service Band B 10,00 0,00 0,00 0,00 0,00 0,00 0,00 Senior Management Service Band C 4,00 0,00 0,00 0,00 0,00 0,00 0,00 Senior Management Service Band D 2,00 0,00 0,00 0,00 0,00 0,00 0,00 Total 2 240,00 0,00 0,00 0,00 0,00 0,00 0,00

TABLE 3.4.2 PROFILE OF EMPLOYEES WHOSE POSITIONS WERE UPGRADED DUE TO THEIR POSTS BEING UPGRADED FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Gender African Asian Coloured White Total

Female 0,00 0,00 0,00 0,00 0,00

Male 0,00 0,00 0,00 0,00 0,00

Total 0,00 0,00 0,00 0,00 0,00

Employees with a disability 0.00 0.00 0.00 0.00 0,00

TABLE 3.4.3 EMPLOYEES WITH SALARY LEVELS HIGHER THAN THOSE DETERMINED BY JOB EVALUATION BY OCCUPATION FOR THE PERIOD 1 APRIL 2018 AND 31 MARCH 2019

Occupation Number of employees Job evaluation level Remuneration level Reason for deviation

None 0.00 0.00 0.00 0.00

Total number of employees whose salaries exceeded the level determined by job evaluation 0.00

Percentage of total employed 0.00

112 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 113 TABLE 3.4.4 PROFILE OF EMPLOYEES WHO HAVE SALARY LEVELS HIGHER THAN THOSE DETERMINED BY JOB EVALUATION FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Gender African Asian Coloured White Total

Female 0,00 0,00 0,00 0,00 0,00 Male 0,00 0,00 0,00 0,00 0,00 Total 0,00 0,00 0,00 0,00 0,00

Employees with a disability 0,00 Notes

Total number of Employees whose salaries exceeded the grades determine by job evaluation 0,00

3.5 Employment Changes

TABLE 3.5.1 ANNUAL TURNOVER RATES BY SALARY BAND FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Number of em- Appointments and Terminations and ployees at begin- Salary band transfers into the transfers out of Turnover rate ning of period-1 department the department April 2019

Lower skilled (Levels 1-2), Permanent 205.00 0.00 3.00 1.50

Skilled (Levels 3-5), Permanent 677.00 7.00 38.00 5.60

Highly skilled production (Levels 6-8), Permanent 562.00 12.00 22.00 3.90

Highly skilled supervision (Levels 9-12), Permanent 215.00 5.00 8.00 3.70

Senior Management Service Band A, Permanent 32.00 0.00 0.00 0.00

Senior Management Service Band B, Permanent 7.00 0.00 1.00 14.30

Senior Management Service Band C, Permanent 3.00 0.00 0.00 0.00

Senior Management Service Band D, Permanent 1.00 0.00 1.00 100.00

Contract (Levels 3-5) Permanent 2.00 2.00 3.00 150.00

Contract (Levels 6-8) Permanent 16.00 4.00 5.00 31.30

Contract (Levels 9-12) Permanent 13.00 8.00 4.00 30.80

Total 1,733.00 40.00 85.00 4.90

114 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 115 TABLE 3.5.2 ANNUAL TURNOVER RATES BY CRITICAL OCCUPATION FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Number of Appointments Terminations employees at and transfers and transfers Critical occupation beginning of Turnover rate into the depart- out of the period-1 April ment department 2019

Administrative Related Permanent 168.00 10.00 6.00 3.60

All Artisans In The Building Metal Machinery Etc. Permanent 11.00 0.00 1.00 9.10

Artisan Project And Related Superintendents Permanent 21.00 5.00 0.00 0.00

Attorneys Permanent 2.00 0.00 0.00 0.00

Authors Journalists And Other Writers Permanent 1.00 0.00 0.00 0.00

Auxiliary And Related Workers Permanent 38.00 0.00 0.00 0.00

Building And Other Property Caretakers Permanent 4.00 0.00 0.00 0.00

Bus And Heavy Vehicle Drivers Permanent 7.00 0.00 1.00 14.30

Cartographers And Surveyors Permanent 2.00 0.00 0.00 0.00

Cartographic Surveying And Related Technicians Permanent 1.00 0.00 0.00 0.00

Civil Engineering Technicians Permanent 2.00 0.00 0.00 0.00

Cleaners In Offices Workshops Hospitals Etc. Permanent 88.00 1.00 1.00 1.10

Client Inform Clerks(Switchb Recept Inform Clerks) Permanent 5.00 1.00 2.00 40.00

Communication And Information Related Permanent 3.00 0.00 0.00 0.00

Computer System Designers And Analysts. Permanent 6.00 0.00 0.00 0.00

Economists Permanent 2.00 0.00 1.00 50.00

Engineering Sciences Related Permanent 25.00 0.00 2.00 8.00

Engineers And Related Professionals Permanent 60.00 2.00 5.00 8.30

Finance And Economics Related Permanent 18.00 0.00 1.00 5.60

Financial And Related Professionals Permanent 9.00 0.00 0.00 0.00

Financial Clerks And Credit Controllers Permanent 45.00 7.00 1.00 2.20

General Legal Administration & Rel. Professionals Permanent 2.00 0.00 0.00 0.00

Head Of Department/Chief Executive Officer Permanent 36.00 1.00 1.00 2.80

Human Resources & Organisat Developm & Relate Prof 18.00 1.00 0.00 0.00 Permanent

Human Resources Clerks Permanent 17.00 1.00 0.00 0.00

Human Resources Related Permanent 1.00 0.00 0.00 0.00

Identification Experts Permanent 4.00 0.00 0.00 0.00

114 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 115 Number of Appointments Terminations employees at and transfers and transfers Critical occupation beginning of Turnover rate into the depart- out of the period-1 April ment department 2019

Information Technology Related Permanent 1.00 0.00 0.00 0.00

Language Practitioners Interpreters & Other Commun Permanent 5.00 0.00 1.00 20.00

Legal Related Permanent 14.00 2.00 2.00 14.30

Library Mail And Related Clerks Permanent 5.00 0.00 1.00 20.00

Light Vehicle Drivers Permanent 2.00 0.00 0.00 0.00

Logistical Support Personnel Permanent 16.00 0.00 1.00 6.30

Material-Recording And Transport Clerks Permanent 25.00 0.00 2.00 8.00

Messengers Porters And Deliverers Permanent 3.00 0.00 0.00 0.00

Motor Vehicle Drivers Permanent 325.00 2.00 11.00 3.40

Other Administrat & Related Clerks And Organisers Permanent 163.00 4.00 6.00 3.70

Other Administrative Policy And Related Officers Permanent 21.00 0.00 1.00 4.80

Other Information Technology Personnel. Permanent 57.00 0.00 6.00 10.50

Other Occupations Permanent 1.00 0.00 0.00 0.00

Photographic Lithographic And Related Workers Permanent 1.00 0.00 0.00 0.00

Printing And Related Machine Operators Permanent 1.00 0.00 0.00 0.00

Quantity Surveyors & Rela Prof Not Class Elsewhere Permanent 8.00 0.00 0.00 0.00

Road Superintendents Permanent 11.00 0.00 0.00 0.00

Road Trade Workers. Permanent 362.00 0.00 24.00 6.60

Road Workers Permanent 49.00 1.00 4.00 8.20

Secretaries & Other Keyboard Operating Clerks Permanent 1.00 0.00 0.00 0.00

Security Guards Permanent 29.00 2.00 1.00 3.40

Senior Managers Permanent 3.00 0.00 0.00 0.00

Statisticians And Related Professionals Permanent 18.00 0.00 1.00 5.60

Trade Labourers Permanent 5.00 0.00 1.00 20.00

Trade Related Permanent 2.00 0.00 0.00 0.00

Water Plant And Related Operators Permanent 9.00 0.00 1.00 11.10

Total 1,733.00 40.00 85.00 4.90

116 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 117 TABLE 3.5.3 REASONS WHY STAFF LEFT THE DEPARTMENT FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Termination Type Number % of Total Resignations

Death 16.00 18.60

Resignation 28.00 32.56

Expiry of contract 13.00 15.12

Dismissal, misconduct,– operational changes 5.00 5.81

Discharged due to ill-health 2.00 2.33

Retirement 21.00 24.42

Transfer to other Public Service Departments 1.00 1.16

Other 0.00 0.00

Total 86.00 4.9%

Total number of employees who left as a % of total employment 4.9%

116 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 117 TABLE 3.5.4 PROMOTIONS BY CRITICAL OCCUPATION FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Salary level promo- Progressions to Notch progression as Promotions to another Occupation Employees 1 April 2019 tions as a % of employ- another notch within a a % of employees by salary level ees by occupation salary level occupation

Administrative Related 168.00 0.00 0.00 136.00 80.95%

All Artisans In The Building Metal Machinery Etc. 11.00 0.00 0.00 2.00 18.18%

Artisan Project And Related Superintendents 21.00 0.00 0.00 16.00 76.20

Attorneys 2.00 0.00 0.00 1.00 50.00

Authors Journalists And Other Writers 1.00 0.00 0.00 1.00 100.00

Auxiliary And Related Workers 38.00 0.00 0.00 36.00 94.70

Building And Other Property Caretakers 4.00 0.00 0.00 4.00 100.00

Bus And Heavy Vehicle Drivers 7.00 0.00 0.00 2.00 28.60

Cartographers And Surveyors 2.00 0.00 0.00 2.00 100.00

Cartographic Surveying And Related Technicians 1.00 0.00 0.00 1.00 100.00

Civil Engineering Technicians 2.00 0.00 0.00 1.00 50.00

Cleaners In Offices Workshops Hospitals Etc. 88.00 0.00 0.00 83.00 94.30

Client Inform Clerks(Switchb Recept Inform Clerks) 5.00 0.00 0.00 4.00 80.00

Communication And Information Related 3.00 0.00 0.00 3.00 100.00

Computer System Designers And Analysts. 6.00 0.00 0.00 6.00 100.00

Economists 2.00 0.00 0.00 2.00 100.00

Engineering Sciences Related 25.00 0.00 0.00 10.00 40.00

Engineers And Related Professionals 60.00 0.00 0.00 25.00 41.70

Finance And Economics Related 18.00 0.00 0.00 15.00 83.30

Financial And Related Professionals 9.00 0.00 0.00 8.00 88.90

Financial Clerks And Credit Controllers 45.00 0.00 0.00 29.00 64.40

General Legal Administration & Rel. Professionals 2.00 0.00 0.00 0.00 0.00

Human Resources & Organisat Developm & Relate Prof 36.00 0.00 0.00 31.00 86.10

Human Resources Clerks 18.00 0.00 0.00 13.00 72.20

Human Resources Related 17.00 0.00 0.00 14.00 82.40

Identification Experts 1.00 0.00 0.00 0.00 0.00

Language Practitioners Interpreters & Other Commun 1.00 0.00 0.00 0.00 0.00

Information Technology Related 4.00 0.00 0.00 3.00 75.00

Legal Related 5.00 0.00 0.00 3.00 60.00

Library Mail And Related Clerks 14.00 0.00 0.00 13.00 92.90

Light Vehicle Drivers 5.00 0.00 0.00 4.00 80.00

Logistical Support Personnel 2.00 0.00 0.00 2.00 100.00

Material-Recording And Transport Clerks 16.00 0.00 0.00 10.00 62.50

118 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 119 Messengers Porters And Deliverers 25.00 0.00 0.00 22.00 88.00

Motor Vehicle Drivers 3.00 0.00 0.00 2.00 66.70

Other Administrative & Related Clerks And Organisers 325.00 0.00 0.00 251.00 77.20

Other Administrative Policy And Related Officers 163.00 3.00 1.80 120.00 73.60

Other Occupations 57.00 0.00 0.00 46.00 80.70

Other Information Technology Personnel. 21.00 0.00 0.00 20.00 95.20

Photographic Lithographic And Related Workers 1.00 0.00 0.00 0.00 0.00

Quantity Surveyors & Rela Prof Not Class Elsewhere 1.00 0.00 0.00 1.00 100.00

Risk Management And Security Services 1.00 0.00 0.00 1.00 100.00

Road Superintendents 8.00 0.00 0.00 8.00 100.00

Road Trade Workers. 11.00 0.00 0.00 11.00 100.00

Road Workers 362.00 0.00 0.00 331.00 91.40

Secretaries & Other Keyboard Operating Clerks 49.00 0.00 0.00 39.00 79.60

Security Guards 1.00 0.00 0.00 1.00 100.00

Senior Managers 29.00 0.00 0.00 17.00 58.60

Statisticians And Related Professionals 3.00 0.00 0.00 3.00 100.00

Trade Labourers 18.00 0.00 0.00 15.00 83.30

Trade Related 5.00 0.00 0.00 4.00 80.00

Total 1,722.00 3.00 1.80 1,372.00 79.67%

TABLE 3.5.5 PROMOTIONS BY SALARY BAND FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Salary bands Progressions to Notch progres- Promotions to promotions as Employees 1 another notch sion as a % of Salary Band another salary a % of employ- April 2019 within a salary employees by level ees by salary level salary bands level

Lower skilled (Levels 1-2), Permanent 205.00 0.00 0.00 199.00 97.10%

Skilled (Levels 3-5), Permanent 677.00 0.00 0.00 565.00 83.50%

Highly skilled production (Levels 6-8), Per- 562.00 3.00 0.50 426.00 75.80 manent

Highly skilled supervision (Levels 9-12), 215.00 0.00 0.00 154.00 71.60 Permanent

Senior management (Levels 13-16), Permanent 43.00 0.00 0.00 28.00 65.10

Contract (Levels 3-5), Permanent 2.00 0.00 0.00 0.00 0.00

Contract (Levels 6-8), Permanent 16.00 0.00 0.00 4.00 25.00

Contract (Levels 9-12), Permanent 13.00 0.00 0.00 4.00 30.80

Total 1,733.00 3.00 0.20 1,380.00 79.60

118 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 119 3.6 TABLE 3.6.1 TOTAL NUMBER OF EMPLOYEES (INCLUDING EMPLOYEES WITH DISABILITIES) IN EACH OF THE FOLLOWING OCCUPATIONAL CATEGORIES AS ON 31 MARCH 2020 120

Male Female Employment Equity Occupational Category Total GAUTENG PROVINCIAL GOVERNMENT | African Coloured Indian White African Coloured Indian White

Legislators, senior officials and managers, Permanent 15 1 2 0 12 1 1 0 32 Professionals, Permanent 96 1 3 10 89 0 3 7 209 Technicians and associate professionals, Permanent 169 6 0 9 163 8 4 14 373 Clerks, Permanent 162 5 0 3 253 9 2 24 458 Service and sales workers, Permanent 1 0 1 0 0 0 0 0 2 Craft and related trades workers, Permanent 33 0 0 16 10 0 1 0 60

DEPARTMENT OFROADSANDTRANSPORT Plant and machine operators and assemblers, Permanent 21 0 0 0 0 0 0 0 21 Elementary occupations, Permanent 369 3 0 12 134 1 0 3 522 Total 866 16 6 50 661 19 11 48 1677 Employees with disabilities 4 1 0 1 2 0 0 0 8

TABLE 3.6.2 TOTAL NUMBER OF EMPLOYEES (INCLUDING EMPLOYEES WITH DISABILITIES) IN EACH OF THE FOLLOWING OCCUPATIONAL BANDS AS ON 31 MARCH 2020

Male Female

Occupational Band Total African Coloured Indian White African Coloured Indian White

Top Management, Permanent 3 0 0 0 0 1 0 0 4 Senior Management, Permanent 18 1 2 0 14 2 2 0 39 Professionally qualified and experienced specialists and 92 5 3 20 94 1 3 10 229 mid-management, Permanent Skilled technical and academically qualified workers, 213 4 1 21 275 9 4 31 558 junior management, supervisors, foremen, Permanent Semi-skilled and discretionary decision making, Permanent 434 5 0 9 182 5 2 6 643 Unskilled and defined decision making, Permanent 106 1 0 0 96 1 0 1 1 Total 866 16 6 50 661 19 11 48 1677 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 121 120 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

TABLE 3.6.3 RECRUITMENT FOR THE PERIOD 1 APRIL 2019 TO 31 MARCH 2020

Male Female

Occupational Category Total African Coloured Indian White African Coloured Indian White

Professionally qualified and experienced specialists and 2 1 0 0 2 0 0 0 5 mid-management, Permanent Skilled technical and academically qualified workers, 4 0 0 0 8 0 0 0 12 junior management, supervisors, foremen, Permanent Semi-skilled and discretionary decision making, Permanent 4 0 0 0 3 0 0 0 7 Contract (Senior Management), Permanent 2 0 0 0 0 0 0 0 2 Contract (Professionally qualified), Permanent 6 1 0 0 1 0 0 0 8 Contract (Skilled technical), Permanent 1 0 1 0 2 0 0 0 4 Contract (Semi-skilled), Permanent 1 0 0 0 1 0 0 0 2 Total 20 2 1 0 17 0 0 0 40 Employees with disabilities 0 0 0 0 0 0 0 0 0 GAUTENG PROVINCIAL GOVERNMENT |

TABLE 3.6.4 PROMOTIONS FOR THE PERIOD 1 APRIL 2019 TO 31 MARCH 2020

Male Female

Occupational Band Total African Coloured Indian White African Coloured Indian White

Top Management 0 0 0 0 0 0 0 0 0

DEPARTMENT OFROADSANDTRANSPORT Senior Management 12 0 2 0 11 1 1 1 28 Professionally qualified and experienced specialists and 59 2 2 12 73 0 2 4 154 mid-management Skilled technical and academically qualified workers, junior management, supervisors, foreman and superinten- 177 4 1 11 203 7 3 23 429 dents Semi-skilled and discretionary decision making 382 5 0 8 158 5 1 6 565 Unskilled and defined decision making 104 1 0 0 93 1 0 0 199 Contract (Professionally qualified), Permanent 2 0 0 0 1 0 0 1 4 Contract (Skilled technical), Permanent 2 0 0 0 2 0 0 0 4 Total 738 12 5 31 541 14 7 562 35

121 Employees with disabilities 0 0 0 0 0 0 0 0 0 TABLE 3.6.5 TERMINATIONS FOR THE PERIOD 1 APRIL 2019 TO 31 MARCH 2020 122

Male Female

GAUTENG PROVINCIAL GOVERNMENT | Occupational Band Total African Coloured Indian White African Coloured Indian White

Top Management 0 0 1 0 0 0 0 0 1 Senior Management 1 0 0 0 0 0 0 0 1 Professionally qualified and experienced specialists and 4 0 0 3 1 0 0 0 8 mid-management Skilled technical and academically qualified workers, junior management, supervisors, foreman and superinten- 6 0 0 2 12 0 0 2 22 dents

DEPARTMENT OFROADSANDTRANSPORT Semi-skilled and discretionary decision making 32 0 0 3 3 0 0 0 38 Unskilled and defined decision making 3 0 0 0 0 0 0 0 3 Contract (Professionally qualified), Permanent 2 2 0 0 0 0 0 0 4 Contract (Skilled technical), Permanent 0 0 2 0 3 0 0 0 5 Contract (Semi-skilled), Permanent 1 0 0 0 2 0 0 0 3 Total 49 2 3 8 21 0 0 2 85 Employees with Disabilities 0 0 0 0 0 0 0 0 0

TABLE 3.6.5 TERMINATIONS FOR THE PERIOD 1 APRIL 2019 TO 31 MARCH 2020

Male Female

Disciplinary action Total African Coloured Indian White African Coloured Indian White

7 0 0 0 1 0 0 0 8 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 123 122 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

TABLE 3.6.7 SKILLS DEVELOPMENT FOR THE PERIOD 1 APRIL 2019 TO 31 MARCH 2020

Male Female

Occupational Category Total African Coloured Indian White African Coloured Indian White

Legislators, senior officials and managers 5 0 0 3 6 0 1 1 16 Professionals 3 0 0 0 0 2 0 0 5 Technicians and associate professionals 337 0 2 18 411 13 1 16 798 Clerks 39 0 0 1 52 13 0 0 105 Service and sales workers 0 0 0 0 0 0 0 0 0 Skilled agriculture and fishery workers 0 0 0 0 0 0 0 0 0 Craft and related trades workers 0 0 0 0 0 0 0 0 0 Plant and machine operators and assemblers 0 0 0 0 0 0 0 0 0 Elementary occupations 37 1 0 0 22 0 0 0 60 Total 421 1 2 22 491 28 2 17 984 Employees with disabilities 4 0 0 0 3 0 0 0 7 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 123 3.7 Signing of Performance Agreements by SMS Members

TABLE 3.7.1 SIGNING OF PERFORMANCE AGREEMENTS BY SMS MEMBERS AS ON 31 MAY 2018 (ZANELE AND URSHLA)??

Signed performance Total number of Total number of Total number of agreements as % of SMS Level signed perfor- funded SMS posts SMS members total number of SMS mance agreements members

Director-General/ Head of Department 1 Acting HOD 0 0% Salary Level 16 1 Salary Level 15 5 3 2 98% Salary Level 14 8 7 7 100% Salary Level 13 33 35 34 98% Total 48 46 43 94%

TABLE 3.7.2 REASONS FOR NOT HAVING CONCLUDED PERFORMANCE AGREEMENTS FOR ALL SMS MEMBERS AS ON 31 MARCH 2020

Reasons

1 – Incapacity Leave 2 – Non-compliance

TABLE 3.7.3 DISCIPLINARY STEPS TAKEN AGAINST SMS MEMBERS FOR NOT HAVING CONCLUDED PERFORMANCE AGREEMENTS AS ON 31 MARCH 2020

Reasons

None (discrepancy with supervisor on the role of responsibilities)

124 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 125 3.8 Performance Rewards

TABLE 3.8.1 PERFORMANCE REWARDS BY RACE, GENDER AND DISABILITY FOR THE PERIOD 1 APRIL 2019 TO 31 MARCH 2020

Beneficiary Profile Cost Number of % of Average Race and Gender Number of beneficia- total within Cost (R’000) cost per employees ries group employee

African, Female 526,00 659,00 79,80 3 868,14 7 354,00

African, Male 741,00 862,00 86,00 4 669,44 6 302,00

Asian, Female 5,00 11,00 45,50 58,18 11 635,00

Asian, Male 4,00 6,00 66,70 61,96 15 490,00

Coloured, Female 8,00 19,00 42,10 59,79 7 474,00

Coloured, Male 11,00 15,00 73,30 82,97 7 543,00

White, Female 31,00 48,00 64,60 267,17 8 618,00

White, Male 42,00 49,00 85,70 409,80 9 757,00

Employees with a disability 7,00 8,00 87,50 55,33 7 904,00

Total 1 375,00 1 677,00 82,00 9 532,79 6 933,00

TABLE 3.8.2 PERFORMANCE REWARDS BY SALARY BAND FOR PERSONNEL BELOW SENIOR MANAGEMENT SERVICE FOR THE PERIOD 1 APRIL 2019 TO 31 MARCH 2020

Beneficiary Profile Cost

Number of % of total Average Salary Band Number of beneficia- within Sala- Cost (R’000) cost per employees ries ry bands employee

01 Lower Skilled (Levels 1-2) 199,00 204,00 97,50 702,39 3 530,00

02 Skilled (Levels 3-5) 561,00 642,00 87,40 3 039,62 5 418,00

03 Highly Skilled Production (Levels 6-8) 449,00 543,00 82,70 3 881,91 8 646,00

04 Highly Skilled Supervision (Levels 9-12) 157,00 211,00 74,40 1 838,08 11 708,00

11 Contract (Levels 3-5) 1,00 1,00 100,00 6,67 6 670,00

12 Contract (Levels 6-8) 5,00 15,00 33,30 39,66 7 931,00

13 Contract (Levels 9-12) 3,00 17,00 17,60 24,46 8 154,00

Total 1 375,00 1 633,00 84,20 9 532,79 6 933,00

124 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 125 TABLE 3.8.3 PERFORMANCE REWARDS BY CRITICAL OCCUPATION FOR THE PERIOD 1 APRIL 2019 TO 31 MARCH 2020

Beneficiary Profile Cost

Critical Occupation Average The Number of benefi- Number of em- % of total within Total Cost (R’000) average cost per ciaries ployees occupation employee

Financial Clerks And Credit Controllers 25,00 46,00 54,30 188,17 7 527,00

Human Resources Clerks 11,00 18,00 61,10 93,53 8 503,00

Messengers Porters And Deliverers 22,00 23,00 95,70 110,12 5 005,00

Human Resources & Organisat Developm & Relate Prof 28,00 36,00 77,80 278,48 9 946,00

All Artisans In The Building Metal Machinery Etc. 11,00 10,00 110,00 104,54 9 504,00

Risk Management And Security Services 1,00 1,00 100,00 13,26 13 265,00

Road Trade Workers. 11,00 11,00 100,00 78,04 7 095,00

Photographic Lithographic And Related Workers 0,00 1,00 0,00 0,00 0,00

Finance And Economics Related 12,00 17,00 70,60 130,79 10 899,00

Logistical Support Personnel 1,00 2,00 50,00 10,39 10 388,00

Other Administrat & Related Clerks And Organisers 225,00 314,00 71,70 1 533,39 6 815,00

Identification Experts 0,00 1,00 0,00 0,00 0,00

Auxiliary And Related Workers 38,00 38,00 100,00 217,02 5 711,00

Other Occupations 51,00 51,00 100,00 282,10 5 531,00

Legal Related 4,00 3,00 133,30 40,12 10 030,00

Financial And Related Professionals 9,00 9,00 100,00 89,32 9 925,00

Building And Other Property Caretakers 3,00 4,00 75,00 14,35 4 783,00

Water Plant And Related Operators 8,00 8,00 100,00 53,41 6 677,00

Architects Town And Traffic Planners 0,00 1,00 0,00 0,00 0,00

Administrative Related 121,00 171,00 70,80 1 119,78 9 254,00

Communication And Information Related 3,00 3,00 100,00 31,31 10 437,00

Secretaries & Other Keyboard Operating Clerks 36,00 46,00 78,30 272,25 7 563,00

Cleaners In Offices Workshops Hospitals Etc. 83,00 89,00 93,30 301,56 3 633,00

Library Mail And Related Clerks 11,00 14,00 78,60 77,29 7 026,00

Human Resources Related 14,00 18,00 77,80 169,41 12 101,00

Attorneys 2,00 2,00 100,00 43,84 21 918,00

Trade/Industry Advisers & Other Related Profession 0,00 2,00 0,00 0,00 0,00

Trade Labourers 17,00 17,00 100,00 81,34 4 785,00

Road Superintendents 8,00 8,00 100,00 77,48 9 685,00

Language Practitioners Interpreters & Other Commun 0,00 1,00 0,00 0,00 0,00

General Legal Administration & Rel. Professionals 1,00 1,00 100,00 13,36 13 357,00

Cartographic Surveying And Related Technicians 1,00 1,00 100,00 8,99 8 986,00

Civil Engineering Technicians 1,00 2,00 50,00 15,63 15 625,00

Road Workers 349,00 339,00 102,90 1 573,89 4 510,00

Material-Recording And Transport Clerks 14,00 15,00 93,30 112,15 8 011,00

Other Administrative Policy And Related Officers 131,00 159,00 82,40 1 197,36 9 140,00

Artisan Project And Related Superintendents 21,00 26,00 80,80 176,55 8 407,00

Statisticians And Related Professionals 2,00 3,00 66,70 19,00 9 500,00

126 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 127 Bus And Heavy Vehicle Drivers 6,00 6,00 100,00 29,33 4 889,00

Senior Managers 0,00 31,00 0,00 0,00 0,00

Client Inform Clerks(Switchb Recept Inform Clerks) 2,00 4,00 50,00 10,21 5 107,00

Computer System Designers And Analysts. 6,00 6,00 100,00 59,21 9 868,00

Authors Journalists And Other Writers 0,00 1,00 0,00 0,00 0,00

Economists 1,00 1,00 100,00 10,39 10 388,00

Engineers And Related Professionals 38,00 65,00 58,50 401,05 10 554,00

Cartographers And Surveyors 0,00 2,00 0,00 0,00 0,00

Trade Related 3,00 4,00 75,00 35,05 11 683,00

Other Information Technology Personnel. 21,00 20,00 105,00 193,94 9 235,00

Light Vehicle Drivers 5,00 4,00 125,00 29,30 5 860,00

Engineering Sciences Related 11,00 13,00 84,60 176,97 16 088,00

Motor Vehicle Drivers 3,00 3,00 100,00 19,77 6 591,00

Security Guards 1,00 1,00 100,00 4,78 4 783,00

Quantity Surveyors & Rela Prof Not Class Elsewhere 1,00 1,00 100,00 13,07 13 069,00

Information Technology Related 2,00 4,00 50,00 21,49 10 744,00

Total 1 375,00 1 677,00 82,00 9 532,79 6 933,00

TABLE 3.8.4 PERFORMANCE-RELATED REWARDS (CASH BONUS), BY SALARY BAND FOR SENIOR MANAGEMENT SERVICE FOR THE PERIOD 1 APRIL 2019 TO 31 MARCH 2020

Beneficiary Profile Cost Total cost as a % of the % of total total personnel Number of Average Salary Band Number of within Total Cost % of SMS expenditure beneficia- cost per employees salary (R’000) Wage Bill ries employee bands Personnel Cost SMS (R’000)

Band A 0,00 35,00 0,00 0,00 0,00 0,00 0,00 Band B 0,00 7,00 0,00 0,00 0,00 0,00 0,00 Band C 0,00 3,00 0,00 0,00 0,00 0,00 0,00 Band D 0,00 1,00 0,00 0,00 0,00 0,00 0,00 Total 0,00 46,00 0,00 0,00 0,00 0,00 0,00

126 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 127 3.9 Foreign Workers

TABLE 3.9.1 FOREIGN WORKERS BY SALARY BAND FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

01 April 2019 31 March 2020 Change Salary Band Number % of total Number % of total Number % Change

Lower skilled 0,00 0,00 0,00 0,00 0,00 0,00

Highly skilled production (Levels 6-8) 2,00 50,00 2,00 50,00 0,00 0,00

Highly skilled supervision (Levels 9-12) 1,00 25,00 1,00 25,00 0,00 0,00

Senior management (Levels 13-16) 1,00 25,00 1,00 25,00 0,00 0,00

Total 4,00 100,00 4,00 100,00 0,00 0,00

TABLE 3.9.2 FOREIGN WORKERS BY MAJOR OCCUPATION FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

01 April 2019 31 March 2020 Change Major Occupation Number % of total Number % of total Number % Change

Elementary occupations 1,00 25,00 1,00 25,00 0,00 0,00

Professionals and managers 3,00 75,00 3,00 75,00 0,00 0,00

Total 4,00 100,00 4,00 100,00 0,00 0,00

128 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 129 3.10 Leave utilisation

TABLE 3.10.1 SICK LEAVE FOR THE PERIOD 1 JANUARY 2019 TO 31 DECEMBER 2019

% Days Number % of total with of Em- Average employ- Estimated Cost Salary band Total days Medical ployees days per ees using (R’000) certifica- using sick employee sick leave tion leave

Lower skilled (Levels 1-2) 1 066,50 83,60 147,00 14,30 7,00 575,00

Skilled (Levels 3-5) 3 133,00 85,20 386,00 37,50 8,00 2 657,00

Highly skilled production (Levels 6-8) 2 752,00 74,90 345,00 33,50 8,00 4 082,00

Highly skilled supervision (Levels 9-12) 1 013,00 79,10 126,00 12,20 8,00 2 759,00

Senior management (Levels 13-16) 180,00 78,30 22,00 2,10 8,00 817,00

Contract (Levels 6-8) 3,00 66,70 2,00 0,20 2,00 4,00

Contract (Levels 9-12) 3,00 0,00 2,00 0,20 2,00 9,00

Total 8 150,50 80,50 1 030,00 100,00 8,00 10 904,00

TABLE 3.10.2 DISABILITY LEAVE (TEMPORARY AND PERMANENT) FOR THE PERIOD 1 JANUARY 2019 TO 31 DECEMBER 2019

Number of % of total % Days with Employ- employ- Average Estimated Salary band Total days Medical ees using ees using days per Cost (R’000) certification disability disability employee leave leave

Lower skilled (Levels 1-2) 19 100 1 0 19 7

Skilled (Levels 3-5) 309 100 7 1 44 217

Highly skilled production (Levels 6-8) 143 100 6 1 24 227

Highly skilled supervision (Levels 9-12) 262 100 1 0 262 440

Senior management (Levels 13-16) 286 100 2 5 143 1274

Total 1019 100 17 1 60 2165

128 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 129 TABLE 3.10.3 ANNUAL LEAVE FOR THE PERIOD 1 JANUARY 2019 TO 31 DECEMBER 2019

Number of Employees Salary band Total days taken Average per employee using annual leave

Lower skilled (Levels 1-2) 4 106,92 206,00 20,00

Skilled (Levels 3-5) 14 257,00 689,00 21,00

Highly skilled production (Levels 6-8) 10 881,00 567,00 19,00

Highly skilled supervision (Levels 9-12) 4 532,00 219,00 21,00

Senior management (Levels 13-16) 935,00 44,00 21,00

Contract (Levels 3-5) 18,00 2,00 9,00

Contract (Levels 6-8) 184,00 17,00 11,00

Contract (Levels 9-12) 83,00 14,00 6,00

Contract (Levels 13-16) 14,00 3,00 5,00

Total 35 010,92 1761 20,00

TABLE 3.10.4 CAPPED LEAVE FOR THE PERIOD 1 JANUARY 2019 TO 31 DECEMBER 2019

The average Total days of Number of Em- Average capped number of Salary band capped leave ployees using leave per employee days taken per taken capped leave as on 31 March 2020 employee

Lower skilled (Levels 1-2) 0,00 0,00 0,00 0,00

Skilled (Levels 3-5) 23,00 11,00 2,00 34,00

Highly skilled production (Levels 6-8) 5,00 4,00 1,00 48,00

Highly skilled supervision (Levels 9-12) 22,00 3,00 7,00 39,00

Senior management (Levels 13-16) 0,00 0,00 0,00 37,00

Contract (Levels 3-5) 0,00 0,00 0,00 0,00

Contract (Levels 6-8) 0,00 0,00 0,00 0,00

Contract (Levels 9-12) 0,00 0,00 0,00 0,00

Contract (Levels 13-16) 0,00 0,00 0,00 0,0

Total 50,00 18,00 3,00 38,00

TABLE 3.10.5 LEAVE PAY-OUTS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Number of Average per Reason Total amount (R’000) employees employee (R’000)

Leave pay-out for 2018/190 due to non-utilisation of leave for the previous 0,00 0,00 0,00 cycle

Capped leave pay-outs on termination of service for 2017/18 3 098,00 35,00 88 ,00

Current leave pay-out on termination of service for 2017/18 2 182,00 69,00 31, 00

Total 5 280,00 104,00 50,00

130 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 131 3.11 HIV/AIDS & Health Promotion Programmes

TABLE 3.11.1 STEPS TAKEN TO REDUCE THE RISK OF OCCUPATIONAL EXPOSURE

Units / Categories of Employees Identified to be at High Risk of Contracting HIV & Related Diseases Key Steps Taken to Reduce the Risk (if any)

Road Workers Medical surveillance is conducted periodically

TABLE 3.11.2 DETAILS OF HEALTH PROMOTION AND HIV/AIDS PROGRAMMES (TICK THE APPLICABLE BOXES AND PROVIDE THE REQUIRED INFORMATION)

Question Yes No Details, if yes

1. Has the department designated a member of the SMS to X Mr Glad Taunyane implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position.

2. Does the department have a dedicated unit or has it des- X 6 employees ignated specific staff members to promote the health and well-being of your employees? If so, indicate the number The Gauteng Department of Health provides funding for external of employees who are involved in this task and the annual HIV/AIDS programme and other departmental partners eg. Govern- budget that is available for this purpose. ment Employee Medical Scheme (GEMS) provides HIV/AIDS testing, screening and counselling for employees 3. Has the department introduced an Employee Assistance X Safety, Health, Environment and Quality Management, Health and or Health Promotion Programme for your employees? If Productivity Management, HIV/AIDS, STI and TB Management, so, indicate the key elements/services of this Programme. Wellness Management

4. Has the department established (a) committee(s) as con- X Ms Dolly Letsholo- Derdepoort R/O templated in Part VI E.5 (e) of Chapter 1 of the Public Ser- Mr Elias Chuene- Benoni R/O vice Regulations, 2001? If so, please provide the names of Mr Jacob Nxumalo-Krugersdorp R/O the members of the committee and the stakeholder(s) that Mr Johannes Radebe- Derdepoort R/O they represent. Ms Julia Khubeka Ms Michelle Nkosi- Heidelburg R/O Mr Tinyiko Shibambu- Krugersdorp R/O Ms Johanna Masia- Koedoespoort R/O Ms Violet Marumo- Zwartkop Training Center

5. Has the department reviewed its employment policies and X Policy on HIV, AIDS, STI & TB was reviewed in this financial year practices to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so reviewed.

6. Has the department introduced measures to protect X Employees have access to external and internal counselling ser- HIV-positive employees or those perceived to be HIV-pos- vices and no employee is forced to disclose their status. Health pro- itive from discrimination? If so, list the key elements of motion campaign includes discussion on stigma and discrimination these measures. 7. Does the department encourage its employees to undergo X Voluntary Counselling and Testing was done in 9 worksites Voluntary Counselling and Testing? If so, list the results that you have you achieved.

8. Has the department developed measures/indicators to X The Department conducts behaviour Risk Management survey once monitor & evaluate the impact of its health promotion in 3 years Programme? If so, list these measures/indicators.

130 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 131 3.12 Labour Relations

TABLE 3.12.1 COLLECTIVE AGREEMENTS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Subject matter Date

None

Notes

Total number of Collective agreements None

TABLE 3.12.2 MISCONDUCT AND DISCIPLINARY HEARINGS FINALISED FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Outcomes of disciplinary hearings Number % of the total

Correctional counselling

Verbal warning

Written warning 1 20%

Final written warning

Suspended without pay

Fine

Demotion

Dismissal 3 60%

Not guilty

Cases withdrawn 1 20%

Total 5 100%

Notes

Total number of Disciplinary hearings finalised 0

132 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 133 TABLE 3.12.3 TYPES OF MISCONDUCT ADDRESSED AT DISCIPLINARY HEARINGS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Type of misconduct Number % of the total

None

TABLE 3.12.4 GRIEVANCES LOGGED FOR THE PERIOD 1 APRIL 2017 AND 31 MARCH 2018

Grievances Number % of Total Number of grievances resolved 17 1 Number of grievances not resolved 3 0 Total number of grievances lodged 20 -

TABLE 3.12.5 DISPUTES LODGED WITH COUNCILS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Disputes Number % of Total Number of disputes upheld 1 0 Number of disputes dismissed 0 0 Total number of disputes lodged 9 -

TABLE 3.12.6 STRIKE ACTIONS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Total number of persons working days lost 0

Total costs working days lost 0

Amount recovered as a result of no work no pay (R’000) Not applicable

TABLE 3.12.7 PRECAUTIONARY SUSPENSIONS FOR THE PERIOD 1 APRIL 2017 AND 31 MARCH 2018

Number of people suspended 0

Number of people whose suspension exceeded 30 days 0

Average number of days suspended Not applicable

Cost of suspension(R’000) Not applicable

132 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 133 3.13 Skills development

TABLE 3.13.1 TRAINING NEEDS IDENTIFIED FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Training needs identified at start of the reporting period Number of employees Occupational category Gender as at 1 Skills Pro- April Other Learner- grammes 2019 forms of Total ships & other training short courses

Female 0 96 96 Legislators, senior officials and managers Male 0 65 65

Female 0 199 186 Professionals Male 0 130 120

Female 0 640 640 Technicians and associate professionals Male 0 560 560

Female 0 316 316 Clerks Male 0 267 267

Female 19 19 Service and sales workers Male 18 18

Female 0 0 Skilled agriculture and fishery workers Male 0 0

Female 0 0 Craft and related trades workers Male 0 0

Female 0 0 Plant and machine operators and assemblers Male 0 0

Female 0 100 100 Elementary occupations Male 0 582 582

Female 0 1370 1370 Sub Total Male 0 1622 1622

Total 0 2992 2992

134 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 135 TABLE 3.13.2 TRAINING PROVIDED FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Training provided within the reporting period Number of employees Occupational category Gender as at 1 Skills Pro- April Other Learner- grammes 2019 forms of Total ships & other training short courses

Female 0 8 0 8 Legislators, senior officials and managers Male 0 8 0 8

Female 0 2 0 2 Professionals Male 0 3 0 3

Female 0 441 0 441 Technicians and associate professionals Male 0 357 0 357

Female 0 65 0 65 Clerks Male 0 40 0 40

Female Service and sales workers Male

Female Skilled agriculture and fishery workers Male

Female Craft and related trades workers Male

Female Plant and machine operators and assemblers Male

Female 0 8 0 8 Elementary occupations Male 0 8 0 8

Female 0 2 0 2 Sub Total Male 0 3 0 3

Total 0 441 0 441

3.14 Injury on duty

TABLE 3.14.1 INJURY ON DUTY FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Nature of injury on duty Number % of total Required basic medical attention only 21 1.21 Temporary Total Disablement 0 0.00 Permanent Disablement 0 0.00 Fatal 0 0.00 Total 21 1.21

134 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 135 3.15 Utilisation of Consultants

TABLE 3.15.1 REPORT ON CONSULTANT APPOINTMENTS USING APPROPRIATED FUNDS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Total number of consultants Duration (work- Contract value in Project title that worked on days) Rand project Pro-Active Health Solutions (Assessment of Incapacity leave and Ill Health 1 264 229,893.00 Retirement applications and related issues)

Sebetsa Staffing Solutions (Personnel Suitability Checks/ Vetting) 1 264 28,998.00

South African Qualifications Authority (Verification of employees’ qualifications) 1 264 10,790.00

Total individual Total duration Total contract Total number of projects consultants Workdays value in Rand

3 3 792 269,681.00

TABLE 3.15.2 ANALYSIS OF CONSULTANT APPOINTMENTS USING APPROPRIATED FUNDS, IN TERMS OF HISTORICALLY DISADVANTAGED INDIVIDUALS (HDIS) FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Number of con- Percentage Percentage man- sultants from HDI Project title ownership by HDI agement by HDI groups that work groups groups on the project Information from the confirmed 3 SPs?- - - -

TABLE 3.15.3 REPORT ON CONSULTANT APPOINTMENTS USING DONOR FUNDS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Total Number of consultants that Duration (Work- Donor and contract Project title worked on the days) value in Rand project - - - -

Total individual Total duration Total contract Total number of projects consultants Workdays value in Rand - - - -

TABLE 3.15.4 ANALYSIS OF CONSULTANT APPOINTMENTS USING DONOR FUNDS, IN TERMS OF HISTORICALLY DISADVANTAGED INDIVIDUALS (HDIS) FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Number of con- Percentage Percentage man- sultants from HDI Project title ownership by HDI agement by HDI groups that work groups groups on the project - - - -

136 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 137 3.16 Severance Packages

TABLE 3.16.1 GRANTING OF EMPLOYEE-INITIATED SEVERANCE PACKAGES FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Number of Number of Number of Number of packages applications applications Salary band applications approved by depart- referred to the supported by received ment MPSA MPSA

Lower skilled (Levels 1-2) 0,00 0,00 0,00 0,00

Skilled Levels 3-5) 0,00 0,00 0,00 0,00

Highly skilled production (Levels 6-8) 0,00 0,00 0,00 0,00

Highly skilled supervision (Levels 9-12) 0,00 0,00 0,00 0,00

Senior management (Levels 13-16) 0,00 0,00 0,00 0,00

Total 0,00 0,00 0,00 0,00

136 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 137 PART E FINANCIAL INFORMATION

138 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 139 GaUTEnG pRovincE Roads and TRanspoRT REPUBLIC OF SOUTH AFRICA

ANNUAL FINANCIAL STATEMENTS FOR GAUTENG DEPARTMENT OF ROADS AND TRANSPORT

FOR THE YEAR ENDED 31 MARCH 2020

138 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 139 TABLE OF CONTENTS

REPORT OF THE AUDITOR GENERAL 141

ANNUAL FINACIALSTATEMENTS 146

140 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 141 1. REPORT OF THE AUDITOR GENERAL

Report of the auditor-general to the Gauteng Provincial Legislature on vote no. 9: Gauteng Department of Roads and Transport

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion 1. I have audited the financial statements of the Gauteng Depart- 5. I believe that the audit evidence I have obtained is sufficient and ment of Roads and Transport set out on pages 146 to 220, which appropriate to provide a basis for my opinion. comprise the appropriation statement, statement of financial position as at 31 March 2020, statement of financial performance, Emphasis of matters statement of changes in net assets and cash flow statement for 6. I draw attention to the matters below. My opinion is not modified the year then ended, as well as the notes to the financial state- in respect of these matters. ments, including a summary of significant accounting policies. Material uncertainties related to contingent liabilities 2. In my opinion, the financial statements present fairly, in all mate- 7. With reference to note 17.1 to the financial statements, the depart- rial respects, the financial position of the Gauteng Department of ment is the defendant in various lawsuits. The ultimate outcome of Roads and Transport as at 31 March 2020, and its financial perfor- the matters cannot presently be determined and no provision for mance and cash flows for the year then ended in accordance with any liability that may result has been made in the financial state- the Modified Cash Standard (MCS) prescribed by the National Trea- ments. sury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and the Division Underspending of vote of Revenue Act of South Africa, 2019 (Act No. 16 of 2019) (Dora). 8. As disclosed in the appropriation statement, the department materially underspent the budget by R637 203 000 on the following Basis for opinion programmes: 3. I conducted my audit in accordance with the International Stan- • programme 1 dards on Auditing (ISAs). My responsibilities under those standards administration, underspending of R49 182 000 are further described in the auditor-general’s responsibilities for • programme 2 the audit of the financial statements section of this auditor’s report. transport infrastructure, underspending of R81 142 000 • programme 3 4. I am independent of the department in accordance with sections transport operations, underspending of R463 262 000 290 and 291 of the Code of ethics for professional accountants and • programme 4 parts 1 and 3 of the International Code of Ethics for Professional transport regulations, underspending of R43 617 000. Accountants (including International Independence Standards) of the International Ethics Standards Board for Accountants (IESBA Significant subsequent events codes) as well as the ethical requirements that are relevant to my 9. I draw attention to note 29 to the financial statements, which audit in South Africa. I have fulfilled my other ethical responsibil- deals with subsequent events and specifically the possible effects ities in accordance with these requirements and the IESBA codes. of the future implications of covid-19 on the department’s future prospects, performance and cash flows. Management also de-

140 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 141 scribes how they plan to deal with these events and circumstances. ed performance information, which must be based on the approved performance planning documents of the department. I have not Responsibilities of the accounting officer for the financial state- evaluated the completeness and appropriateness of the perfor- ments mance indicators included in the planning documents. My proce- 10. The accounting officer is responsible for the preparation and fair dures do not examine whether the actions taken by the department presentation of the financial statements in accordance with the enabled service delivery. My procedures also do not extend to any MCS prescribed by the National Treasury and the requirements of disclosures or assertions relating to planned performance strategies the PFMA and Dora, and for such internal control as the accounting and information in respect of future periods that may be included officer determines is necessary to enable the preparation of finan- as part of the reported performance information. Accordingly, my cial statements that are free from material misstatement, whether findings do not extend to these matters. due to fraud or error. 16. I evaluated the usefulness and reliability of the reported perfor- 11. In preparing the financial statements, the accounting officer is re- mance information in accordance with the criteria developed from sponsible for assessing the department’s ability to continue as a the performance management and reporting framework, as defined going concern, disclosing, as applicable, matters relating to going in the general notice, for the following selected programme present- concern and using the going concern basis of accounting unless the ed in the annual performance report of the department for the year appropriate governance structure either intends to liquidate the de- ended 31 March 2020: partment or to cease operations, or has no realistic alternative but

to do so. Pages in the annual Programme performance report Auditor-general’s responsibilities for the audit of the financial statements Programme 3 – transport operations 65 - 69 12. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report 17. I performed procedures to determine whether the reported perfor- that includes my opinion. Reasonable assurance is a high level of mance information was properly presented and whether perfor- assurance, but is not a guarantee that an audit conducted in accor- mance was consistent with the approved performance planning dance with the ISAs will always detect a material misstatement documents. I performed further procedures to determine whether when it exists. Misstatements can arise from fraud or error and are the indicators and related targets were measurable and relevant, considered material if, individually or in aggregate, they could rea- and assessed the reliability of the reported performance information sonably be expected to influence the economic decisions of users to determine whether it was valid, accurate and complete. taken on the basis of these financial statements. 18. The material findings in respect of the usefulness and reliability of 13. A further description of my responsibilities for the audit of the finan- the selected programme are as follows: cial statements is included in the annexure to this auditor’s report.

REPORT ON THE AUDIT OF THE ANNUAL PERFORMANCE REPORT PROGRAMME 3 – TRANSPORT OPERATIONS

Introduction and scope Various indicators 14. In accordance with the Public Audit Act of South Africa, 2004 (Act 19. I was unable to obtain sufficient appropriate audit evidence for the No. 25 of 2004) (PAA) and the general notice issued in terms thereof, reported achievements of three of the eight indicators relating to I have a responsibility to report on the usefulness and reliability of this programme. This was due to the lack of accurate and complete the reported performance information against predetermined objec- records. I was unable to confirm the reported achievements by al- tives for the selected programme presented in the annual perfor- ternative means. Consequently, I was unable to determine whether mance report. I performed procedures to identify material findings any adjustments were required to the reported achievements in the but not to gather evidence to express assurance. annual performance report for the indicators listed below:

15. My procedures address the usefulness and reliability of the report-

142 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 143 were corrected and the supporting records were provided subse- Indicator description Reported achievement quently, resulting in the financial statements receiving an unqualified opinion.

Number of routes subsidised 3 032 Strategic planning and performance management 26. Specific information systems were not implemented to enable the Number of kilometres subsidised 76 128 776,13 monitoring of progress made towards achieving targets, core objectives and service delivery, as required by public service regulation Number of trips subsidised 1 547 451 25(1)(e)(i) and (iii).

OTHER INFORMATION

Other matter 27. The accounting officer is responsible for the other information. The 20. I draw attention to the matter below. other information comprises the information included in the annual report. The other information does not include the financial statements, the auditor’s report and the selected programme presented Achievement of planned targets in the annual performance report that has been specifically reported 21. Refer to the annual performance report on page 39 to 74 for in- in this auditor’s report. formation on the achievement of planned targets for the year and explanations provided for the under/overachievement of a signif- 28. My opinion on the financial statements and findings on the report- icant number of targets. This information should be considered in ed performance information and compliance with legislation do not the context of the material finding on the reliability of the reported cover the other information and I do not express an audit opinion or performance information in paragraph 19 of this report. any form of assurance conclusion thereon.

REPORT ON THE AUDIT OF COMPLIANCE WITH LEGISLATION 29. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other informa- Introduction and scope tion is materially inconsistent with the financial statements and the 22. In accordance with the PAA and the general notice issued in terms selected programme presented in the annual performance report, or thereof, I have a responsibility to report material findings on the my knowledge obtained during the audit or otherwise appears to be department’s compliance with specific matters in key legislation. I materially misstated. performed procedures to identify findings but not to gather evidence to express assurance. 30. The other information I obtained prior to the date of the auditor’s report is a draft of the 2019-20 annual report. The final 2019-20 23. The material findings on compliance with specific matters in key annual report is expected to be made available to me after 31 Oc- legislation are as follows: tober 2020. If, based on the work I have performed on the other information that I have obtained prior the date of this auditor’s re- Conditional grants port, I conclude that there is a material misstatement of this other 24. The performance of the programmes funded by the public transport information, I am required to report that fact. operations grant was not evaluated, as required by section 11(6)(a) of the Dora. 31. When I do receive and read the final 2019-20 annual report, and if I conclude that there is a material misstatement therein, I am required Annual financial statements, performance report and annual re- to communicate the matter to those charged with governance and port request that the other information be corrected. If the other infor- 25. The financial statements submitted for auditing were not prepared mation is not corrected, I may have to retract this auditor’s report in accordance with the MCS and supported by full and proper re- and re-issue an amended report as appropriate. However, if it is cords, as required by section 40(1) (a) and (b) of the PFMA. Material corrected this will not be necessary. misstatements of irregular and fruitless and wasteful expenditure identified by the auditors in the submitted financial statements

142 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 143 INTERNAL CONTROL DEFICIENCIES OTHER REPORTS

32. I considered internal control relevant to my audit of the financial 35. I draw attention to the following engagements conducted by various statements, reported performance information and compliance with parties which had, or could have, an impact on the matters report- applicable legislation; however, my objective was not to express ed in the department’s financial statements, reported performance any form of assurance on it. The matters reported below are limited information, compliance with applicable legislation and other re- to the significant internal control deficiencies that resulted in the lated matters. These reports did not form part of my opinion on the findings on the annual performance report and the findings on com- financial statements or my findings on the reported performance pliance with legislation included in this report. information or compliance with legislation.

33. The accounting officer did not adequately exercise oversight re- 36. Various investigations were initiated by the department into alle- sponsibility regarding financial and performance reporting and gations of possible unethical behaviour and allegations of procure- compliance with legislation. The department did not have sufficient ment and contract management irregularities. These investigations monitoring and reviewing controls to ensure that financial and per- were at various stages of completion at the date of this auditor’s formance reports submitted for auditing were accurate and com- report. plete and that action plans developed were adequately and timeously implemented.

34. Management did not adequately review and monitor compliance with applicable laws and regulations. Johannesburg 31 October 2020

144 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 145 ANNEXURE – AUDITOR-GENERAL’S RESPONSIBILITY FOR THE AUDIT

1. As part of an audit in accordance with the ISAs, I exercise profes- the audit evidence obtained, whether a material uncertainty sional judgement and maintain professional scepticism throughout exists related to events or conditions that may cast significant my audit of the financial statements, and the procedures performed doubt on the Gauteng Department of Roads and Transport to on reported performance information for the selected programme continue as a going concern. If I conclude that a material un- and on the department’s compliance with respect to the selected certainty exists, I am required to draw attention in my auditor’s subject matters. report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are Financial statements inadequate, to modify the opinion on the financial statements. 2. In addition to my responsibility for the audit of the financial state- My conclusions are based on the information available to me ments as described in this auditor’s report, I also: at the date of this auditor’s report. However, future events or conditions may cause a department to cease continuing as a • identify and assess the risks of material misstatement of the going concern financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain • evaluate the overall presentation, structure and content of the audit evidence that is sufficient and appropriate to provide financial statements, including the disclosures, and whether a basis for my opinion. The risk of not detecting a material the financial statements represent the underlying transactions misstatement resulting from fraud is higher than for one and events in a manner that achieves fair presentation. resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control Communication with those charged with governance 3. I communicate with the accounting officer regarding, among other • obtain an understanding of internal control relevant to the matters, the planned scope and timing of the audit and significant audit in order to design audit procedures that are appropriate audit findings, including any significant deficiencies in internal in the circumstances, but not for the purpose of expressing control that I identify during my audit. an opinion on the effectiveness of the department’s internal control 4. I also confirm to the accounting officer that I have complied with relevant ethical requirements regarding independence, and commu- • evaluate the appropriateness of accounting policies used nicate all relationships and other matters that may reasonably be and the reasonableness of accounting estimates and related thought to have a bearing on my independence and, where applica- disclosures made by the accounting officer ble, actions taken to eliminate threats or safeguards applied.

• conclude on the appropriateness of the accounting officer’s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on

144 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 145 2. ANNUAL FINANCIAL STATEMENTS

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

Table of Contents

Appropriation Statement 3

Notes to the Appropriation Statement 31

Statement of Financial Performance 33

Statement of Financial Position 34

Statement of Changes in Net Assets 35

Cash Flow Statement 36

Notes to the Annual Financial Statements (including Accounting policies) 37

Annexures 76

146 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 147

- 2 - 146 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

APPROPRIATION STATEMENT for the year ended 31 March 2020

Appropriation per programme 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of Appropriation Expenditure final appropriation R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Programme ADMINISTRATION 383,279 - - 383,279 334,097 49,182 87.2% 332,154 285,736 TRANSPORT INFRASTRUCTURE 2,240,823 - (333) 2,240,490 2,159,348 81,142 96.4% 2,825,907 2,740,989 TRANSPORT OPERATIONS 2,689,995 - - 2,689,995 2,226,733 463,262 82.8% 2,537,507 2,311,691 TRANSPORT REGULATION 332,609 - 333 332,942 289,325 43,617 86.9% 294,077 291,626 GAUTRAIN 2,153,314 - - 2,153,314 2,153,314 - 100.0% 1,945,268 1,945,268

GAUTENG PROVINCIAL GOVERNMENT | Subtotal 7,800,020 - - 7,800,020 7,162,817 637,203 91.8% 7,934,913 7,575,310 TOTAL (brought forward) Reconciliation with statement of financial performance ADD Departmental receipts 4,196,215 4,042,228 Actual amounts per statement of financial performance (total revenue) 11,996,235 11,977,141 ADD Prior year unauthorised expenditure approved without funding - - Actual amounts per statement of financial performance (total expenditure) 7,162,817 7,575,310 DEPARTMENT OFROADSANDTRANSPORT 147

- 3 - 148 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | APPROPRIATION STATEMENT for the year ended 31 March 2020

Appropriation per economic classification 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 DEPARTMENT OFROADSANDTRANSPORT Economic classification Current payments 2,401,583 (6,656) - 2,394,927 2,275,411 119,516 95.0% 2,352,019 2,276,520 Compensation of employees 750,285 - - 750,285 673,426 76,859 89.8% 702,514 653,722 Salaries and wages 632,545 (111) - 632,434 573,264 59,170 90.6% 589,264 558,599 Social contributions 117,740 111 - 117,851 100,162 17,689 85.0% 113,250 95,123 Goods and services 1,651,098 (6,656) - 1,644,442 1,601,968 42,474 97.4% 1,634,767 1,608,146 Administrative fees 2,160 1,841 - 4,001 3,912 89 97.8% 2,476 2,389 Advertising 9,561 (5,569) - 3,992 3,245 747 81.3% 6,399 5,725 Minor assets 655 (269) - 386 327 59 84.7% 1,483 1,477 Audit costs: External 6,500 1,205 - 7,705 7,706 (1) 100.0% 6,249 6,251 Bursaries: Employees 2,200 (76) - 2,124 99 2,025 4.7% 2,100 1,409 Catering: Departmental activities 3,205 (91) - 3,114 1,736 1,378 55.7% 2,988 1,996 Communication 11,642 670 - 12,312 8,775 3,537 71.3% 6,907 6,573 Computer services 16,595 11,919 - 28,514 27,717 797 97.2% 23,500 18,041 Consultants: Business and advisory services 57,650 (3,877) - 53,773 38,128 15,645 70.9% 27,110 24,714 Infrastructure and planning services 33,408 (4,423) - 28,985 26,985 2,000 93.1% 25,811 25,801 Laboratory services 200 60 - 260 262 (2) 100.8% 1,943 1,979 Legal services 15,210 3,966 - 19,176 14,832 4,344 77.3% 18,494 18,448 Contractors 1,217,402 19,811 - 1,237,213 1,248,622 (11,409) 100.9% 1,266,701 1,259,268 Agency and support / outsourced services 150 - - 150 150 - 100.0% - - Entertainment ------Fleet services 9,769 718 - 10,487 8,988 1,499 85.7% 8,563 7,595

- 4 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 149 148 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

APPROPRIATION STATEMENT for the year ended 31 March 2020

Housing ------Inventory: Clothing material and supplies - 2,016 - 2,016 2,016 - 100.0% 2,387 2,387 Inventory: Fuel, oil and gas 2,200 (2,200) ------Inventory: Materials and supplies 40,850 (22,037) - 18,813 18,815 (2) 100.0% 27,757 27,749 Inventory: Other supplies 6,904 (28) - 6,876 6,356 520 92.4% 15,897 15,659 Consumable supplies 1,483 232 - 1,715 1,677 34 97.8% 2,783 2,277 Consumable: Stationery, printing and office supplies 84,345 (6,147) - 78,198 66,510 11,676 85.1% 76,635 76,177 Operating leases 24,656 1,997 - 26,653 25,265 1,388 94.8% 24,444 24,008 Property payments 68,260 (2,032) - 66,228 60,594 5,634 91.5% 56,627 56,621 Transport provided: Departmental activity 320 - - 320 163 157 50.9% 360 29 Travel and subsistence 15,570 (208) - 15,362 13,472 1,890 87.7% 15,014 12,604

GAUTENG PROVINCIAL GOVERNMENT | Training and development 16,900 (6,606) - 10,294 10,096 198 98.1% 8,600 6,416 Operating payments ------9 8 Venues and facilities 3,303 2,472 - 5,775 5,520 255 95.6% 3,530 2,545 Rental and hiring ------Interest and rent on land 200 - - 200 17 183 8.5% 14,738 14,652 Interest 200 - - 200 17 183 8.5% 14,738 14,652 Rent on land ------Transfers and subsidies 4,781,062 (2,119) - 4,778,943 4,330,252 448,681 90.6% 4,461,844 4,236,476 Provinces and municipalities 2,300 (361) - 1,939 1,939 - 100.0% 1,899 1,900

DEPARTMENT OFROADSANDTRANSPORT Municipalities 2,300 (361) - 1,939 1,939 - 100.0% 1,899 1,900 Municipal bank accounts 2,300 (361) - 1,939 1,939 - 100.0% 1,899 1,900 Departmental agencies and accounts 2,153,314 - - 2,153,314 2,153,314 - 100.0% 1,945,268 1,945,268 Departmental agencies and accounts 2,153,314 - - 2,153,314 2,153,314 - 100.0% 1,945,268 1,945,268 Higher education institutions ------Public corporations and private enterprises 2,615,700 - - 2,615,700 2,167,575 448,125 82.9% 2,463,790 2,239,153 Private enterprises 2,615,700 - - 2,615,700 2,167,575 448,125 82.9% 2,463,790 2,239,153 149

- 5 - 150 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | APPROPRIATION STATEMENT for the year ended 31 March 2020

Other transfers to private enterprises 2,615,700 - - 2,615,700 2,167,575 448,125 82.9% 2,463,790 2,239,153 Non-profit institutions ------Households 9,748 (1,758) - 7,990 7,424 566 92.9% 50,887 50,155 Social benefits 6,579 174 - 6,753 6,745 8 99.9% 5,785 5,053 Other transfers to households 3,169 (1,932) - 1,237 679 558 54.9% 45,102 45,102 Payments for capital assets 617,375 8,759 - 626,134 557,138 68,996 89.0% 1,120,928 1,062,229 DEPARTMENT OFROADSANDTRANSPORT Buildings and other fixed structures 596,865 4,690 - 601,555 544,246 57,309 90.5% 1,084,943 1,034,803 Buildings 2,916 300 - 3,216 2,716 500 84.5% 5,874 5,873 Other fixed structures 593,949 4,390 - 598,339 541,530 56,809 90.5% 1,079,069 1,028,930 Machinery and equipment 18,950 (722) - 18,228 7,601 10,627 41.7% 18,921 14,662 Transport equipment 2,260 (344) - 1,916 900 1,016 47.0% 2,817 963 Other machinery and equipment 16,690 (378) - 16,312 6,701 9,611 41.1% 16,104 13,699 Intangible assets 1,560 4,791 - 6,351 5,291 1,060 83.3% 17,064 12,764 Payments for financial assets - 16 - 16 16 - 100.0% 122 85 Total 7,800,020 - - 7,800,020 7,162,187 637,203 91.8% 7,934,913 7,575,310

- 6 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 151 150 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

APPROPRIATION STATEMENT for the year ended 31 March 2020

PROGRAMME 1: ADMINISTRATION 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Sub programme 1.1.Office of the MEC 13,419 649 - 14,068 13,348 720 94.9% 9,690 7,755 1.2.Management of the Department 34,698 834 - 35,532 29,915 5,617 84.2% 18,509 15,830 1.3.Corporate Support 331,614 (1,483) - 330,131 287,814 42,317 87.2% 300,620 259,247 1.4.Departmental Strategy 3,548 - - 3,548 3,020 528 85.1% 3,335 2,904

GAUTENG PROVINCIAL GOVERNMENT | Total for sub programmes 383,279 - - 383,279 334,097 49,182 87.2% 332,154 285,736

Economic classification Current payments 367,867 - - 367,867 326,069 41,798 88.6% 318,654 278,305 Compensation of employees 202,514 - - 202,514 181,413 21,101 89.6% 188,460 168,460 Salaries and wages 172,424 144 - 172,568 157,705 14,863 91.4% 160,560 146,398 Social contributions 30,090 (144) - 29,946 23,708 6,238 79.2% 27,900 22,062 Goods and services 165,293 - - 165,293 144,660 20,643 87.5% 130,134 109,845 Administrative fees

DEPARTMENT OFROADSANDTRANSPORT 1,935 2,006 - 3,941 3,912 29 99.3% 2,286 2,255 Advertising 4,670 (3,102) - 1,568 1,465 113 92.8% 5,301 4,792 Minor assets 200 (48) - 152 170 (8) 111.8% 372 371 Audit costs: External 6,500 1,205 - 7,705 7,706 (1) 100.0% 6,249 6,251 Bursaries: Employees 2,200 (76) - 2,124 99 2,025 4.7% 2,100 1,409 Catering: Departmental activities 2,905 - - 2,905 1,616 1,289 55.6% 2,712 1,888 Communication 11,080 - - 11,080 7,543 3,537 68.1% 6,428 6,040 Computer services 15,795 11,919 - 27,714 27,717 (3) 100.0% 21,700 16,241 Consultants: Business and advisory services 18,650 (4,377) - 14,273 7,356 6,917 51.5% 3,340 945 151

- 7 - 152 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | APPROPRIATION STATEMENT for the year ended 31 March 2020

Legal services 6,700 (819) - 5,881 4,174 1,707 71.0% 5,449 5,447 Contractors 3,240 160 - 3,400 3,401 (1) 100.0% 2,450 1,199 Entertainment ------Fleet services 3,070 2,364 - 5,434 5,434 - 100.0% 4,159 3,320 Inventory: Materials and supplies ------1,740 - Inventory: Other supplies ------52 - Consumable supplies DEPARTMENT OFROADSANDTRANSPORT 825 233 - 1,058 1,045 13 98.8% 1,300 1,065 Consumable: Stationery, printing and office supplies 8,494 (4,915) - 3,579 3,042 537 85.0% 2,443 2,261 Operating leases 3,566 981 - 4,547 4,548 (1) 100.0% 3,715 3,281 Property payments 50,700 - - 50,700 47,800 2,900 94.3% 42,900 42,893 Transport provided: Departmental activity 320 - - 320 163 157 50.9% 360 29 Travel and subsistence 4,690 (1,342) - 3,348 2,347 1,001 70.1% 3,555 1,704 Training and development 16,900 (6,606) - 10,294 10,096 198 98.1% 8,600 6,416 Operating payments ------Venues and facilities 2,853 2,417 - 5,270 5,026 244 95.4% 2,923 2,038 Rental and hiring ------Interest and rent on land 60 - - 60 6 54 10.0% 60 - Interest 60 - - 60 6 54 10.0% 60 - Transfers and subsidies 2,482 - - 2,482 2,254 228 90.8% 610 217 Households 2,482 - - 2,482 2,254 228 90.9% 610 217 Social benefits 550 1,932 - 2,482 2,254 228 90.9% 610 217 Other transfers to households 1,932 (1,932) ------Payments for capital assets 12,930 - - 12,930 5,774 7,156 44.5% 12,840 7,193 Machinery and equipment 12,370 - - 12,370 5,274 7,096 42.5% 9,040 7,193 Transport equipment 500 (371) - 129 - 129 - 340 105 Other machinery and equipment 11,870 371 - 12,241 5,274 6,967 43.0% 8,700 7,088 Intangible assets 560 - - 560 500 60 89.3% 3,800 - Payments for financial assets ------50 21

Total 383,279 - - 383,279 334,097 49,182 87.2% 332,154 285,736

- 8 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 153 152 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

APPROPRIATION STATEMENT for the year ended 31 March 2020

Sub programme: 1.1: Office of the MEC 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments 11,287 761 - 12,048 11,327 721 94.0% 9,690 7,755 Compensation of employees 7,922 761 - 8,683 8,684 (1) 100.0% 6,100 5,610 Goods and services 3,365 - - 3,365 2,643 722 78.5% 3,590 2,145 Interest and rent on land ------Transfers and subsidies 1,932 88 - 2,020 2,021 (1) 100.0% - - Households 1,932 88 - 2,020 2,021 (1) 100.0% - - Payments for capital assets

GAUTENG PROVINCIAL GOVERNMENT | 200 (200) ------Buildings and other fixed structures ------Machinery and equipment 200 (200) ------Intangible assets ------Payments for financial assets ------Total 13,419 649 - 14,068 13,348 720 94.9% 9,690 7,755

DEPARTMENT OFROADSANDTRANSPORT

153

- 9 - 154 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | APPROPRIATION STATEMENT for the year ended 31 March 2020

Sub programme: 1.2: Management of the Department 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 DEPARTMENT OFROADSANDTRANSPORT Current payments 34,628 463 - 35,091 29,463 5,628 84.0% 18,409 15,795 Compensation of employees 15,600 463 - 16,063 16,063 - 100.0% 15,390 12,884 Goods and services 19,028 - - 19,028 13,400 5,628 70.4% 3,019 2,911 Interest and rent on land ------Transfers and subsidies 70 - - 70 69 1 98.6% 60 35 Households 70 - - 70 69 1 98.6% 60 35 Payments for capital assets - 371 - 371 383 - 103.2% 40 - Buildings and other fixed structures ------Machinery and equipment - 371 - 371 383 - 103.2% 40 - Intangible assets ------Payments for financial assets ------

Total 34,698 834 - 35,532 29,915 5,617 84.2% 18,509 15,830

- 10 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 155 154 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

APPROPRIATION STATEMENT for the year ended 31 March 2020

Sub programme: 1.3: Corporate Support 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments 318,404 (1,224) - 317,180 282,259 34,921 89.0% 287,220 251,851 Compensation of employees 175,744 (1,224) - 174,520 153,647 20,873 88.0% 163,835 147,092 Goods and services 142,600 - - 142,600 128,606 13,994 90.1% 123,325 104,759 Interest and rent on land 60 - - 60 6 54 10.0% 60 - Transfers and subsidies

GAUTENG PROVINCIAL GOVERNMENT | 480 (88) - 392 164 228 41.8% 550 182 Departmental agencies and accounts ------Households 480 (88) - 392 164 228 41.8% 550 182 Payments for capital assets 12,730 (171) - 12,559 5,391 7,168 42.9% 12,800 7,193 Buildings and other fixed structures ------Machinery and equipment 12,170 (171) - 11,999 4,891 7,108 40.8% 9,000 7,193 Intangible assets 560 - - 560 500 60 89.3% 3,800 Payments for financial assets ------50 21 Total 331,614 (1,483) - 330,131 287,814 42,317 87.2% 300,620 259,247

DEPARTMENT OFROADSANDTRANSPORT

155

- 11 - 156 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | APPROPRIATION STATEMENT for the year ended 31 March 2020

Sub programme: 1.4: Departmental Strategy 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure

DEPARTMENT OFROADSANDTRANSPORT appropriation

Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments 3,548 - - 3,548 3,020 528 85.1% 3,335 2,904 Compensation of employees 3,248 - - 3,248 3,019 229 92.9% 3,135 2,874 Goods and services 300 - - 300 1 299 0.3% 200 30 Interest and rent on land ------Transfers and subsidies ------Payments for capital assets ------Intangible assets ------Payments for financial assets ------Total 3,548 - - 3,548 3,020 528 85.1% 3,335 2,904

- 12 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 157 156 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

APPROPRIATION STATEMENT for the year ended 31 March 2020

PROGRAMME 2: TRANSPORT INFRASTRUCTURE 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Sub programme 2.1.Infrastructure Planning 67,258 (3,929) - 63,329 58,064 5,265 91.7% 58,213 58,072 2.2.Infrastructure Design 157,150 (2,369) - 154,781 111,765 43,016 72.2% 176,765 176,717 2.3.Construction 561,490 (655) - 560,835 536,202 24,633 95.6% 880,782 825,607 2.4.Maintenance 1,421,678 8,150 - 1,429,828 1,427,135 2,693 99.8% 1,618,080 1,592,264

GAUTENG PROVINCIAL GOVERNMENT | 2.5.Programme Support Infrastructure 33,247 (1,197) (333) 31,717 26,182 5,535 82.5% 92,067 88,329

Total for sub programmes 2,240,823 - (333) 2,240,490 2,159,348 81,142 96.4% 2,825,907 2,740,989 Economic classification Current payments 1,634,358 (6,656) - 1,627,702 1,605,578 22,125 98.6% 1,684,316 1,651,388 Compensation of employees 310,800 - - 310,800 279,580 31,220 90.0% 313,085 284,808 Salaries and wages 260,300 - - 260,300 235,954 24,346 90.6% 257,652 241,518 Social contributions 50,500 - - 50,500 43,626 6,874 86.4% 55,433 43,290 Goods and services 1,323,508 (6,656) - 1,316,852 1,325,987 (9,135) 100.7% 1,356,578 1,351,928 Administrative fees 165 (165) - - - - - 135 134 DEPARTMENT OFROADSANDTRANSPORT Advertising 4,098 (2,351) - 1,747 1,747 - 100.0% 843 842 Minor assets 385 (337) - 48 48 - 100.0% 1,071 1,094 Audit costs: External ------Bursaries: Employees ------Catering: Departmental activities 150 (91) - 59 59 - 100.0% 126 93 Communication 12 (2) - 10 10 - 100.0% 10 9 Computer services ------Consultants: Business and - 500 - 500 500 - 100.0% - - advisory services 157

- 13 - 158 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | APPROPRIATION STATEMENT for the year ended 31 March 2020

Infrastructure and planning 33,408 (4,423) - 28,985 26,985 2,000 93.1% 25,811 25,801 services Laboratory services 200 60 - 260 262 (2) 100.8% 1,943 1,979 Legal services 5,060 5,267 - 10,327 10,327 - 100.0% 12,715 12,679 Contractors 1,211,590 19,855 - 1,231,445 1,243,127 (11,682) 100.9% 1,262,921 1,256,739 Agency and support / outsourced ------services

DEPARTMENT OFROADSANDTRANSPORT Fleet services 2,625 (1,660) - 965 966 (1) 100.1% 1,626 1,623 Housing ------Inventory: Clothing material and - 2,016 - 2,016 2,016 - 100.0% 2,387 2,387 supplies Inventory: Fuel, oil and gas 2,200 (2,200) ------Inventory: Materials and supplies 40,850 (22,037) - 18,813 18,815 (2) 100.0% 26,014 27,749 Consumable supplies 610 15 - 625 626 (1) 100.2% 1,273 1,206 Consumable: Stationery, printing 1,255 (415) - 840 840 - 100.0% 1,053 997 and office supplies Operating leases 1,140 295 - 1,435 1,433 2 99.9% 1,359 1,359 Property payments 11,000 (2,032) - 8,968 8,542 426 95.2% 7,755 7,756 Transport provided: Departmental ------activity Travel and subsistence 8,700 1,038 - 9,738 9,613 125 98.7% 9,477 9,453 Training and development ------Operating payments ------9 8 Venues and facilities 60 11 - 71 71 - 100.0% 50 20 Rental and hiring ------Interest and rent on land 50 - - 50 11 39 22.0% 14,653 14,652 Interest 50 - - 50 11 39 22.0% 14,653 14,652 Rent on land ------Transfers and subsidies 8,606 (2,119) (333) 6,154 5,882 272 95.6% 51,186 51,140 Provinces and municipalities 2,300 (361) - 1,939 1,939 - 100.0% 1,899 1,900 Municipalities 2,300 (361) - 1,939 1,939 - 100.0% 1,899 1,900 Municipal bank accounts 2,300 (361) - 1,939 1,939 - 100.0% 1,899 1,900 Non-profit institutions ------

- 14 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 159 158 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

APPROPRIATION STATEMENT for the year ended 31 March 2020

Households 6,306 (1,758) (333) 4,215 3,943 272 93.5% 49,287 49,240 Social benefits 5,069 (1,758) (30) 3,281 3,264 17 99.5% 4,185 4,138 Other transfers to households 1,237 - (303) 934 679 255 72.7% 45,102 45,102 Payments for capital assets 597,859 8,759 - 606,618 547,872 58,746 90.3% 1,090,344 1,038,400 Buildings and other fixed structures 592,399 4,690 - 597,089 541,530 55,559 90.7% 1,069,409 1,019,270 Buildings ------Other fixed structures 592,399 4,690 - 597,089 541,530 55,559 90.7% 1,069,409 1,019,270 Machinery and equipment 5,460 (722) - 4,738 1,551 3,187 32.7% 8,171 6,366 Transport equipment 800 - - 800 157 643 19.6% 1,335 27 Other machinery and equipment 4,660 (722) - 3,938 1,394 2,544 35.4% 6,836 6,339 Intangible assets - 4,791 - 4,791 4,791 - 100.0% 12,764 12,764 Payments for financial assets - 16 - 16 16 - 100.0% 61 61 Total 2,240,823 - (333) 2,240,490 2,159,348 81,142 96.4% 2,825,907 2,740,989 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 159

- 15 - 160 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | APPROPRIATION STATEMENT for the year ended 31 March 2020

Sub programme: 2.1.Infrastructure Planning 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

DEPARTMENT OFROADSANDTRANSPORT Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments 67,118 (3,929) - 63,189 57,925 5,264 91.7% 58,058 57,955 Compensation of employees 31,900 - - 31,900 28,635 3,265 89.8% 30,259 30,259 Goods and services 35,218 (3,929) - 31,289 29,290 1,999 93.6% 27,799 27,696 Interest and rent on land ------Transfers and subsidies 140 - - 140 139 1 99.3% 110 107 Provinces and municipalities ------Households 140 - - 140 139 1 99.3% 110 107 Payments for capital assets ------45 10 Buildings and other fixed structures ------Machinery and equipment ------45 10 Intangible assets Payments for financial assets ------Total 67,258 (3,929) - 63,329 58,064 5,265 91.7% 58,213 58,072

- 16 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 161 160 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

APPROPRIATION STATEMENT for the year ended 31 March 2020

Sub programme: 2.2.Infrastructure Design 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments 69,700 (3,008) - 66,692 62,116 4,576 93.1% 59,749 59,746 Compensation of employees 48,900 - - 48,900 44,409 4,491 90.8% 46,147 46,147 Goods and services 20,800 (3,008) - 17,792 17,707 85 99.5% 13,602 13,599 Interest and rent on land ------Transfers and subsidies 241 639 - 880 880 - 100.0% 120 79 Provinces and municipalities ------Households

GAUTENG PROVINCIAL GOVERNMENT | 241 639 - 880 880 - 100.0% 120 79 Payments for capital assets 87,209 - - 87,209 48,769 38,440 55.9% 116,896 116,892 Buildings and other fixed structures 87,209 - - 87,209 48,769 38,440 55.9% 116,896 116,892 Machinery and equipment ------Intangible assets ------Payments for financial assets Total 157,150 (2,369) - 154,781 111,765 43,016 72.2% 176,765 176,717

DEPARTMENT OFROADSANDTRANSPORT

161

- 17 - 162 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | APPROPRIATION STATEMENT for the year ended 31 March 2020

Sub programme: 2.3. Construction 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 DEPARTMENT OFROADSANDTRANSPORT Current payments 55,300 (16) - 55,284 47,777 7,507 86.4% 52,170 47,131 Compensation of employees 50,800 - - 50,800 43,332 7,468 85.3% 44,284 42,459 Goods and services 4,500 (16) - 4,484 4,445 39 99.1% 7,886 4,672 Interest and rent on land ------Transfers and subsidies 1,000 (639) - 361 354 7 98.1% 160 159 Households 1,000 (639) - 361 354 7 98.1% 160 159 Payments for capital assets 505,190 - - 505,190 488,071 17,119 96.6% 828,452 778,317 Buildings and other fixed structures 505,190 - - 505,190 488,071 17,119 96.6% 828,452 778,317 Machinery and equipment ------Intangible assets ------Payments for financial assets Total 561,490 (655) - 560,835 536,202 24,633 95.6% 880,782 825,607

- 18 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 163 162 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

APPROPRIATION STATEMENT for the year ended 31 March 2020

Sub programme: 2.4. Maintenance 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments 1,414,220 1,494 - 1,415,714 1,413,030 2,684 99.8% 1,470,008 1,444,198 Compensation of employees 177,000 - - 177,000 162,634 14,366 91.9% 189,800 165,204 Goods and services 1,237,220 1,494 - 1,238,714 1,250,396 (11,682) 100.9% 1,280,208 1,278,994 Interest and rent on land ------Transfers and subsidies 5,958 (2,119) - 3,839 3,830 9 99.8% 5,694 5,693 Provinces and municipalities 2,300 (361) - 1,939 1,939 - 100.0% 1,899 1,900 Departmental agencies and accounts

GAUTENG PROVINCIAL GOVERNMENT | ------Households 3,658 (1,758) - 1,900 1,891 9 99.5% 3,795 3,793 Payments for capital assets 1,500 8,759 - 10,259 10,259 - 100.0% 142,333 142,328 Buildings and other fixed structures - 4,690 - 4,690 4,690 - 100.0% 124,061 124,061 Machinery and equipment 1,500 (722) - 778 778 - 100.0% 5,508 5,503 Intangible assets - 4,791 - 4,791 4,791 - 100.0% 12,764 12,764 Payments for financial assets - 16 - 16 16 - 100.0% 45 45 Total 1,421,678 8,150 - 1,429,828 1,427,135 2,693 99.8% 1,618,080 1,592,264

DEPARTMENT OFROADSANDTRANSPORT

163

- 19 - 164 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | APPROPRIATION STATEMENT for the year ended 31 March 2020

Sub Programme 2.5.Programme Support Infrastructure 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 DEPARTMENT OFROADSANDTRANSPORT Current payments 28,020 (1,197) - 26,823 24,730 2,093 92.2% 44,331 42,358 Compensation of employees 2,200 - - 2,200 570 1,630 25.9% 2,595 739 Goods and services 25,770 (1,197) - 24,573 24,149 424 98.3% 27,083 26,967 Interest and rent on land 50 - - 50 11 39 22.0% 14,653 14,652 Transfers and subsidies 1,267 - (333) 934 679 255 72.7% 45,102 45,102 Households 1,267 - (333) 934 679 255 72.7% 45,102 45,102 Payments for capital assets 3,960 - - 3,960 773 3,187 19.5% 2,618 853 Buildings and other fixed structures ------Machinery and equipment 3,960 - - 3,960 773 3,187 19.5% 2,618 853 Intangible assets ------Payments for financial assets ------16 16 Total 33,247 (1,197) (333) 31,717 26,182 5,535 82.5% 92,067 88,329

- 20 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 165 164 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

APPROPRIATION STATEMENT for the year ended 31 March 2020

PROGRAMME 3: TRANSPORT OPERATIONS 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Sub programme 3.1.Public Transport Services 2,682,707 - - 2,682,707 2,224,203 458,504 82.9% 2,533,725 2,309,086 3.2.Programme Support Operations 7,288 - - 7,288 2,530 4,758 34.7% 3,782 2,605

Total for sub programmes 2,689,995 - - 2,689,995 2,226,733 463,262 82.8% 2,537,507 2,311,691 Economic classification Current payments 72,835 - - 72,835 59,094 13,741 81.1% 63,802 62,772 GAUTENG PROVINCIAL GOVERNMENT | Compensation of employees 27,975 - - 27,975 26,653 1,322 95.3% 27,563 27,048 Salaries and wages 23,825 - - 23,825 22,679 1,146 95.2% 23,448 23,081 Social contributions 4,150 - - 4,150 3,974 176 95.8% 4,115 3,967 Goods and services 44,860 - - 44,860 32,441 12,419 72.3% 36,239 35,724 Administrative fees ------Advertising 340 - - 340 43 297 12.6% 65 50 Minor assets 10 - - 10 5 5 50.0% - - Audit costs: External ------Bursaries: Employees ------DEPARTMENT OFROADSANDTRANSPORT Catering: Departmental activities 50 - - 50 3 47 6.0% 50 5 Consultants: Business and advisory services 39,000 - - 39,000 30,272 8,728 77.6% 23,770 23,769 Legal services 2,500 - - 2,500 - 2,500 - - - Fleet services 800 - - 800 230 570 28.8% 295 296 Inventory: Other supplies ------9,749 9,749 Consumable supplies ------Consumable: Stationery, printing and office supplies 440 (203) - 237 72 165 30.4% 185 2 165

- 21 - 166 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | APPROPRIATION STATEMENT for the year ended 31 March 2020

Operating leases 820 107 - 927 928 (1) 100.1% 975 973 Travel and subsistence 840 96 - 936 839 97 89.6% 800 592 Training and development ------Operating payments ------Venues and facilities 60 - - 60 49 11 81.7% 350 288 Rental and hiring ------Interest and rent on land DEPARTMENT OFROADSANDTRANSPORT ------Interest ------Transfers and subsidies 2,615,830 - - 2,615,830 2,167,639 448,191 82.9% 2,463,965 2,239,208 Public corporations and private enterprises 2,615,700 - - 2,615,700 2,167,575 448,125 82.9% 2,463,790 2,239,153 Public corporations ------Private enterprises 2,615,700 - - 2,615,700 2,167,575 448,125 82.9% 2,463,790 2,239,153 Other transfers to private enterprises 2,615,700 - - 2,615,700 2,167,575 448,125 82.9% 2,463,790 2,239,153 Households 130 - - 130 64 66 49.2% 175 55 Social benefits 130 - - 130 64 66 49.2% 175 55 Payments for capital assets 1,330 - - 1,330 - 1,330 - 9,740 9,711 Buildings and other fixed structures 1,250 - - 1,250 - 1,250 - 9,660 9,660 Buildings ------Other fixed structures 1,250 - - 1,250 - 1,250 - 9,660 9,660 Machinery and equipment 80 - - 80 - 80 - 80 51 Transport equipment 80 - - 80 - 80 - 80 51 Other machinery and equipment ------Intangible assets ------Payments for financial assets ------Total 2,689,995 - - 2,689,995 2,226,733 463,262 82.8% 2,537,507 2,311,691

- 22 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 167 166 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

APPROPRIATION STATEMENT for the year ended 31 March 2020

3.1.Public Transport Services 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments 65,657 - - 65,657 56,577 9,080 86.2% 60,220 60,218 Compensation of employees 25,867 - - 25,867 25,612 255 99.0% 26,121 26,121 Goods and services 39,790 - - 39,790 30,965 8,825 77.8% 34,099 34,097 Interest and rent on land ------Transfers and subsidies 2,615,800 - - 2,615,800 2,167,626 448,174 82.9% 2,463,845 2,239,208 Provinces and municipalities ------Departmental agencies and accounts

GAUTENG PROVINCIAL GOVERNMENT | 2,615,700 - - 2,615,700 2,167,575 448,125 82.9% 2,463,790 2,239,153 Households 100 - - 100 51 49 51.0% 55 55 Payments for capital assets 1,250 - - 1,250 - 1,250 - 9,660 9,660 Buildings and other fixed structures 1,250 - - 1,250 - 1,250 - 9,660 9,660 Machinery and equipment ------Intangible assets ------Payments for financial assets ------Total 2,682,707 - - 2,682,707 2,224,203 458,504 82.9% 2,533,725 2,309,086

DEPARTMENT OFROADSANDTRANSPORT

167

- 23 - 168 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | APPROPRIATION STATEMENT for the year ended 31 March 2020

3.2. Programme Support Operations 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 DEPARTMENT OFROADSANDTRANSPORT Current payments 7,178 - - 7,178 2,517 4,661 35.1% 3,582 2,554 Compensation of employees 2,108 - - 2,108 1,041 1,067 49.4% 1,442 927 Goods and services 5,070 - - 5,070 1,476 3,594 29.1% 2,140 1,627 Interest and rent on land ------Transfers and subsidies 30 - - 30 13 17 43.3% 120 - Households 30 - - 30 13 17 43.3% 120 - Payments for capital assets 80 - - 80 - 80 - 80 51 Buildings and other fixed structures ------Machinery and equipment 80 - - 80 - 80 - 80 51 Intangible assets ------Payments for financial assets ------Total 7,288 - - 7,288 2,530 4,758 34.7% 3,782 2,605

- 24 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 169 168 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

APPROPRIATION STATEMENT for the year ended 31 March 2020

PROGRAMME 4: TRANSPORT REGULATIONS 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Sub programme 4.1.Transport Administration and Licencing 185,716 38 333 186,087 162,749 23,338 87.5% 161,774 160,369 4.2.Operator Licence And Permits 146,893 (38) - 146,855 126,576 20,279 86.2% 132,303 131,257

Total for sub programmes 332,609 - 333 332,942 289,325 43,617 86.9% 294,077 291,626 Economic classification

GAUTENG PROVINCIAL GOVERNMENT | Current payments 326,523 - - 326,523 284,670 41,853 87.2% 285,247 284,055 Compensation of employees 208,996 - - 208,996 185,780 23,216 88.9% 173,406 173,406 Salaries and wages 175,996 (255) - 175,741 156,926 18,815 89.3% 147,604 147,602 Social contributions 33,000 255 - 33,255 28,854 4,401 86.8% 25,802 25,804 Goods and services 117,437 - - 117,437 98,890 18,547 84.2% 111,816 110,649 Administrative fees 60 - - 60 - 60 - 55 - Advertising 453 (116) - 337 - 337 - 190 41 Minor assets 60 116 - 176 140 72 59.1% 40 12 Catering: Departmental activities 100 - - 100 58 42 58.0% 100 10

DEPARTMENT OFROADSANDTRANSPORT Communication 550 672 - 1,222 1,222 - 100.0% 469 524 Computer services 800 - - 800 - 800 - 1,800 1,800 Legal services 950 (482) - 468 331 137 70.7% 330 322 Contractors 2,572 (204) - 2,368 2,094 274 88.4% 1,330 1,330 Agency and support / outsourced services 150 - - 150 150 - 100.0% - - Entertainment ------Fleet services 3,274 14 - 3,288 2,358 930 71.7% 2,483 2,356 Inventory: Materials and supplies ------3 - 169

- 25 - 170 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | APPROPRIATION STATEMENT for the year ended 31 March 2020

Inventory: Other supplies 6,904 (28) - 6,876 6,356 520 92.4% 6,096 5,910 Consumable supplies 48 (16) - 32 6 26 18.8% 210 6 Consumable: Stationery, printing and office supplies 74,156 (614) - 73,542 62,556 10,986 85.1% 72,954 72,917 Operating leases 19,130 614 - 19,744 18,356 1,388 93.0% 18,395 18,395 Property payments 6,560 - - 6,560 4,252 2,308 64.8% 5,972 5,972 Travel and subsistence 1,340 - - 1,340 673 667 50.2% 1,182 855 DEPARTMENT OFROADSANDTRANSPORT Training and development ------Operating payments ------Venues and facilities 330 44 - 374 374 - 100.0% 207 199 Rental and hiring ------Interest and rent on land 90 - - 90 - 90 - 25 - Interest 90 - - 90 - 90 - 25 - Rent on land ------Transfers and subsidies 830 - 333 1,163 1,163 - 100.0% 815 643 Households 830 - 333 1,163 1,163 - 100.0% 815 643 Social benefits 830 - 30 860 1,163 (303) 135.2% 815 643 Other transfers to households - - 303 303 - 303 - - - Payments for capital assets 5,256 - - 5,256 3,492 1,764 66.4% 8,004 6,925 Buildings and other fixed structures 3,216 - - 3,216 2,716 500 84.5% 5,874 5,873 Buildings 2,916 300 - 3,216 2,716 500 84.5% 5,874 5,873 Other fixed structures 300 (300) ------Machinery and equipment 1,040 - - 1,040 776 264 74.6% 1,630 1,052 Transport equipment 880 27 - 907 743 164 81.9% 1,062 780 Other machinery and equipment 160 (27) - 133 33 100 24.8% 568 272 Intangible assets 1,000 - - 1,000 - 1,000 - 500 - Payments for financial assets ------11 3 Total 332,609 - 333 332,942 289,325 43,617 86.9% 294,077 291,626

- 26 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 171 170 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

APPROPRIATION STATEMENT for the year ended 31 March 2020

4.1 Transport Administration and Licencing 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 Current payments 180,340 - - 180,340 158,595 21,745 87.9% 156,867 156,275 Compensation of employees 139,216 - - 139,216 124,933 14,283 89.7% 118,634 118,634 Goods and services 41,124 - - 41,124 33,662 7,462 81.9% 38,233 37,641 Interest and rent on land ------Transfers and subsidies 760 38 333 1,131 1,131 - 100.0% 445 443 Households 760 38 333 1,131 1,131 - 100.0% 445 443 Payments for capital assets

GAUTENG PROVINCIAL GOVERNMENT | 4,616 - - 4,616 3,023 1,593 65.5% 4,453 3,649 Buildings and other fixed structures 2,916 - - 2,916 2,565 351 88.0% 2,953 2,953 Machinery and equipment 700 - - 700 458 242 65.4% 1,000 696 Intangible assets 1,000 - - 1,000 - 1,000 - 500 Payments for financial assets ------9 2 Total 185,716 38 333 186,087 162,749 23,338 87.5% 161,774 160,369

DEPARTMENT OFROADSANDTRANSPORT

171

- 27 - 172 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | APPROPRIATION STATEMENT for the year ended 31 March 2020

4.2.Operator Licence And Permits 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000 DEPARTMENT OFROADSANDTRANSPORT Current payments 146,183 - - 146,183 126,075 20,108 86.2% 128,380 127,780 Compensation of employees 69,780 - - 69,780 60,847 8,933 87.2% 54,772 54,772 Goods and services 76,313 - - 76,313 65,228 11,085 85.5% 73,583 73,008 Interest and rent on land 90 - - 90 - 90 - 25 - Transfers and subsidies 70 (38) - 32 32 - 100.0% 370 200 Households 70 (38) - 32 32 - 100.0% 370 200 Payments for capital assets 640 - - 640 469 171 73.3% 3,551 3,276 Buildings and other fixed structures 300 - - 300 151 149 50.3% 2,921 2,920 Machinery and equipment 340 - - 340 318 22 93.5% 630 356 Intangible assets ------Payments for financial assets - - - 2 1 Total 146,893 (38) - 146,855 126,576 20,279 86.2% 132,303 131,257

- 28 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 173 172 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

APPROPRIATION STATEMENT for the year ended 31 March 2020

PROGRAMME 5: GAUTRAIN 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Sub programme 5.1.GAUTRAIN RAPID LINK 2,153,314 - - 2,153,314 2,153,314 - 100.0% 1,945,268 1,945,268

Total for sub programmes 2,153,314 - - 2,153,314 2,153,314 - 100.0% 1,945,268 1,945,268 Economic classification Transfers and subsidies 2,153,314 - - 2,153,314 2,153,314 - 100.0% 1,945,268 1,945,268 Departmental agencies and accounts 2,153,314 - - 2,153,314 2,153,314 - 100.0% 1,945,268 1,945,268 GAUTENG PROVINCIAL GOVERNMENT | Total 2,153,314 - - 2,153,314 2,153,314 - 100.0% 1,945,268 1,945,268

5.1.Subprogramme GAUTRAIN RAPID LINK 2019/20 2018/19 Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

DEPARTMENT OFROADSANDTRANSPORT Transfers and subsidies 2,153,314 - - 2,153,314 2,153,314 - 100.0% 1,945,268 1,945,268 Departmental agencies and accounts 2,153,314 - - 2,153,314 2,153,314 - 100.0% 1,945,268 1,945,268 Total 2,153,314 - - 2,153,314 2,153,314 - 100.0% 1,945,268 1,945,268

173

- 29 - GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March 2020

1. Detail of transfers and subsidies as per Appropriation Act (after Virement):

Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-F) to the Annual Financial Statements.

2. Detail of specifically and exclusively appropriated amounts voted (after Virement):

Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.

3. Detail on payments for financial assets

Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual Financial Statements.

4. Explanations of material variances from Amounts Voted (after Virement):

Variance as a % Final Actual of Final 4.1 Per programme Appropriation Expenditure VarianceR’000 Appropriation Administration 383,279 334,097 49,182 13% Transport Infrastructure 2,240,490 2,159,348 81,142 4% Transport Operations 2,689,995 2,226,733 463,262 17% Transport Regulation 332,942 289,325 43,617 13% Gautrain 2,153,314 2,153,314 - 0%

Variance as a % Final Actual of Final 4.2 Per economic classification Appropriation Expenditure Variance Appropriation R’000 R’000 R’000 R’000 Current payments Compensation of employees 750,285 673,426 76,859 10% Goods and services 1,644,442 1,601,968 42,474 3% Interest and rent on land 200 17 183 92%

Transfers and subsidies Provinces and municipalities 1,939 1,939 - 0% Departmental agencies and accounts 2,153,314 2,153,314 - 0% Public corporations and private enterprises 2,615,700 2,167,575 448,125 17% Households 7,990 7,424 566 7%

Payments for capital assets Buildings and other fixed structures 601,555 544,246 57,309 10% Machinery and equipment 18,228 7,601 10,627 58% Intangible assets 6,351 5,291 1,060 17%

Payments for financial assets 16 16 - 0%

- 30 -

174 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 175 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE APPROPRIATION STATEMENT for the year ended 31 March 2020

The Department incurred total under spending of R637,203 million for the 2019/20 financial year. The breakdown of the under spending per programme is as follows:

1. Administration-R49.182 million

The recorded underspending within this programme was mainly driven by the Department’s delays in filling vacant positions on the current organisational structure.

2. Transport Infrastructure-R81.142 million The underspending within this programme was mainly due to:  Delays within the Departments project planning and procurement processes.  Delays in the filling of vacant positions on the current organisational structure.

3. Transport Operations-R 463.262 million

The underspending within this programme occurred mainly due to the prolonged financial challenges within the subsidised bus industry leading bus operators not operating within the required operating time table, resulting in DNOs (Did Not Operate). A bus operator’s failure to operate as required results in the Department levying financial penalties against the applicable bus operator.

4. Transport Regulations-R43.617 million The underspending within this programme was mainly due to:  The reduced number of office supplies purchased for the Department’s frontline service delivery points such as Driver Licence Testing Centre’s (DLTC’s);  Delays in the filling of vacant positions on the current organisational structure.

4.3 Per conditional grant Variance as a % Final Actual of Final Appropriation Expenditure Variance Appropriation R’000 R’000 R’000 R’000 Public Transport Operation Grant 2,436,074 2,014,534 421,540 17% Provincial Roads Maintenance Grant 767,506 767,354 152 0% EPWP Integrated Grant for Prov 6,386 6,386 - 0%

- 31 -

174 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 175 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

STATEMENT OF FINANCIAL PERFORMANCE for the year ended 31 March 2020

Note 2019/20 2018/19 R'000 R'000 REVENUE Annual appropriation 1 7 800 020 7 934 913 Departmental revenue 2 4 196 215 4 042 228

TOTAL REVENUE 11 996 235 11 977 141

EXPENDITURE Current expenditure Compensation of employees 3 673 426 653 722 Goods and services 4 1 601 968 1 608 146 Interest and rent on land 5 17 14 652 Total current expenditure 2 275 411 2 276 520

Transfers and subsidies Transfers and subsidies 7 4 330 252 4 236 476 Total transfers and subsidies 4 330 252 4 236 476

Expenditure for capital assets Tangible assets 8 551 847 1 049 465 Intangible assets 8 5 291 12 764 Total expenditure for capital assets 557 138 1 062 229

Payments for financial assets 6 16 85

TOTAL EXPENDITURE 7 162 817 7 575 310

SURPLUS/(DEFICIT) FOR THE YEAR 4 833 418 4 401 831

Reconciliation of Net Surplus/(Deficit) for the year Voted funds 637 203 359 603 Annual appropriation 215 511 143 669 Conditional grants 421 692 215 934 Departmental revenue and NRF Receipts 13 4 196 215 4 042 228 SURPLUS/(DEFICIT) FOR THE YEAR 4 833 418 4 401 831

- 32 -

176 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 177 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

STATEMENT OF FINANCIAL POSITION as at 31 March 2020

Note 2019/20 2018/19 R'000 R'000 ASSETS

Current assets 1 023 374 704 184 Cash and cash equivalents 9 1 020 049 701 549 Receivables 11 3 325 2 635

Non-current assets 786 786 Receivables 11 786 786

TOTAL ASSETS 1 024 160 704 970

LIABILITIES

Current liabilities 1 022 444 703 423 Voted funds to be surrendered to the Revenue Fund 12 637 203 359 603 Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund 13 384 681 343 453 Payables 14 560 367

TOTAL LIABILITIES 1 022 444 703 423

NET ASSETS 1 716 1 547 Represented by: Capitalisation reserve - - Recoverable revenue 1 716 1 547

TOTAL 1 716 1 547

- 33 -

176 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 177 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

STATEMENT OF CHANGES IN NET ASSETS for the year ended 31 March 2020

Note 2019/20 2018/19 R'000 R'000 Recoverable revenue Opening balance 1 547 1 515 Transfers: 169 32 Irrecoverable amounts written off (3) (10) Debts revised - - Debts recovered (included in departmental receipts) (145) (632) Debts raised 317 674 Closing balance 1 716 1 547

TOTAL 1 716 1 547

- 34 -

178 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 179 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

CASH FLOW STATEMENT for the year ended 31 March 2020

Note 2019/20 2018/19 R'000 R’000 CASH FLOWS FROM OPERATING ACTIVITIES Receipts 11 996 235 11 977 141 Annual appropriated funds received 1.1 7 800 020 7 934 913 Statutory appropriated funds received - - Departmental revenue received 2 4 196 202 4 042 214 Interest received 2.2 13 14 NRF Receipts - - Aid assistance received - -

Net (increase)/decrease in working capital (497) (460) Surrendered to Revenue Fund (4 514 590) (4 319 297) Surrendered to RDP Fund/Donor - - Current payments (2 275 394) (2 261 868) Interest paid 5 (17) (14 652) Payments for financial assets (16) (85) Transfers and subsidies paid (4 330 252) (4 236 476) Net cash flow available from operating activities 15 875 469 1 144 303

CASH FLOWS FROM INVESTING ACTIVITIES Distribution/dividend received - - Payments for capital assets 8 (557 138) (1 062 229) Proceeds from sale of capital assets - - (Increase)/decrease in loans - - (Increase)/decrease in investments - - (Increase)/decrease in other financial assets - - (Increase)/decrease in non-current receivables - - Net cash flows from investing activities (557 138) (1 062 229)

CASH FLOWS FROM FINANCING ACTIVITIES Increase/(decrease) in net assets 169 32 Increase/(decrease) in non-current payables - - Net cash flows from financing activities 169 32

Net increase/(decrease) in cash and cash equivalents 318 500 82 106 Cash and cash equivalents at beginning of period 701 549 619 443 Unrealised gains and losses within cash and cash equivalents - Cash and cash equivalents at end of period 16 1 020 049 701 549

- 35 -

178 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 179 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

Summary of significant accounting policies The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. Management has concluded that the financial statements present fairly the department’s primary and secondary information. The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation. Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the financial statements and to comply with the statutory requirements of the Public Finance Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act.

1 Basis of preparation The financial statements have been prepared in accordance with the Modified Cash Standard.

2 Going concern The financial statements have been prepared on a going concern basis.

The international Corona Virus (COVID-19) pandemic has been an unprecedented and unforeseen event which has impacted negatively on the social and economic welfare of all countries world-wide.

The declaration of a state of disaster by President of the Republic of South Africa ushered in an array of legislative measures, amongst them being a national period of lockdown commencing 27th March 2020. The Department continued to provide essential services during this period of national lockdown. In support of all essential services, i.e. law enforcement, health care, banking and other designated services the Department identified the strategic need to respond to the pandemic by focussing on preventing the loss of lives both within the Department and that of the users of public transport within the Province.

The Department’s financial response to support its strategic pandemic response plan resulted in parts of the 2020/2021 budget being reprioritised towards COVID-19 priorities. The service delivery impact is such that projects completion and initiation will be adversely affected and as such they will be delays for both project initiation and completion date.

3 Presentation currency Amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.

4 Rounding Unless otherwise stated financial figures have been rounded to the nearest one thousand Rand (R’000).

5 Foreign currency translation Cash flows arising from foreign currency transactions are translated into South African Rands using the spot exchange rates prevailing at the date of payment / receipt.

6 Comparative information

6.1 Prior period comparative information Prior period comparative information has been presented in the current year’s financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format of the current year’s financial statements.

- 36 -

180 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 181 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

6.2 Current year comparison with budget A comparison between the approved, final budget and actual amounts for each programme and economic classification is included in the appropriation statement.

7 Revenue

7.1 Appropriated funds Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation). Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective.Adjustments made in terms of the adjustments budget process are recognised in the statement of financial performance on the date the adjustments become effective. The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognised as a payable / receivable in the statement of financial position.

7.2 Departmental revenue Departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the relevant revenue fund, unless stated otherwise. Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the statement of financial position.

7.3 Accrued departmental revenue Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the financial statements when:  it is probable that the economic benefits or service potential associated with the transaction will flow to the department; and  the amount of revenue can be measured reliably. The accrued revenue is measured at the fair value of the consideration receivable. Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents. Write-offs are made according to the department’s debt write-off policy

8 Expenditure

8.1 Compensation of employees

8.1.1 Salaries and wages Salaries and wages are recognised in the statement of financial performance on the date of payment.

8.1.2 Social contributions Social contributions made by the department in respect of current employees are recognised in the statement of financial performance on the date of payment. Social contributions made by the department in respect of ex-employees are classified as transfers to households in the statement of financial performance on the date of payment.

8.2 Other expenditure Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of financial performance on the date of payment.The expense is classified as a capital

- 37 -

180 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 181 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

expense if the total consideration paid is more than the capitalisation threshold.

8.3 Accruals and payables not recognised Accruals and payables not recognised are recorded in the notes to the financial statements at cost at the reporting date.

8.4 Leases

8.4.1 Operating leases Operating lease payments made during the reporting period are recognised as current expenditure in the statement of financial performance on the date of payment. The operating lease commitments are recorded in the notes to the financial statements.

8.4.2 Finance leases Finance lease payments made during the reporting period are recognised as capital expenditure in the statement of financial performance on the date of payment. The finance lease commitments are recorded in the notes to the financial statements and are not apportioned between the capital and interest portions. Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of:  cost, being the fair value of the asset; or  the sum of the minimum lease payments made, including any payments made to acquire ownership at the end of the lease term, excluding interest.

9 Cash and cash equivalents Cash and cash equivalents are stated at cost in the statement of financial position. Bank overdrafts are shown separately on the face of the statement of financial position as a current liability. For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.

10 Prepayments and advances Prepayments and advances are recognised in the statement of financial position when the department receives or disburses the cash. Prepayments and advances are initially and subsequently measured at cost. Prepayments are expensed in line with the contractual agreement.

11 Loans and receivables Loans and receivables are recognised in the statement of financial position at cost plus accrued interest, where interest is charged, less amounts already settled or written-off.Write-offs are made according to the department’s write-off policy.

12 Financial assets

12.1 Financial assets (not covered elsewhere) A financial asset is recognised initially at its cost plus transaction costs that are directly attributable to the acquisition or issue of the financial asset.

- 38 -

182 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 183 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

At the reporting date, a department shall measure its financial assets at cost, less amounts already settled or written- off, except for recognised loans and receivables, which are measured at cost plus accrued interest, where interest is charged, less amounts already settled or written-off.

12.2 Impairment of financial assets Where there is an indication of impairment of a financial asset, an estimation of the reduction in the recorded carrying value, to reflect the best estimate of the amount of the future economic benefits expected to be received from that asset, is recorded in the notes to the financial statements.

13 Payables Payables recognised in the statement of financial position are recognised at cost.

14 Capital Assets

14.1 Immovable capital assets Immovable assets reflected in the asset register of the department are recorded in the notes to the financial statements at cost or fair value where the cost cannot be determined reliably. Immovable assets acquired in a non- exchange transaction are recorded at fair value at the date of acquisition. Immovable assets are subsequently carried in the asset register at cost and are not currently subject to depreciation or impairment. Subsequent expenditure of a capital nature forms part of the cost of the existing asset when ready for use. Additional information on immovable assets not reflected in the assets register is provided in the notes to financial statements.

14.2 Movable capital assets Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition. Where the cost of movable capital assets cannot be determined reliably, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1. Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment. Subsequent expenditure that is of a capital nature forms part of the cost of the existing asset when ready for use.

14.3 Intangible assets Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition. Internally generated intangible assets are recorded in the notes to the financial statements when the department commences the development phase of the project. Where the cost of intangible assets cannot be determined reliably, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1. Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.

Subsequent expenditure of a capital nature forms part of the cost of the existing asset when ready for use.

- 39 -

182 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 183 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

14.4 Project Costs: Work-in-progress Expenditure of a capital nature is initially recognised in the statement of financial performance at cost when paid. Amounts paid towards capital projects are separated from the amounts recognised and accumulated in work-in- progress until the underlying asset is ready for use. Once ready for use, the total accumulated payments are recorded in an asset register. Subsequent payments to complete the project are added to the capital asset in the asset register. Where the department is not the custodian of the completed project asset, the asset is transferred to the custodian subsequent to completion.

15 Provisions and Contingents

15.1 Provisions Provisions are recorded in the notes to the financial statements when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation and a reliable estimate of the obligation can be made. The provision is measured as the best estimate of the funds required to settle the present obligation at the reporting date.

15.2 Contingent liabilities Contingent liabilities are recorded in the notes to the financial statements when there is a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department or when there is a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably.

15.3 Contingent assets Contingent assets are recorded in the notes to the financial statements when a possible asset arises from past events, and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department.

15.4 Capital commitments Capital commitments are recorded at cost in the notes to the financial statements.

16 Unauthorised expenditure Unauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either:  approved by Parliament or the Provincial Legislature with funding and the related funds are received; or  approved by Parliament or the Provincial Legislature without funding and is written off against the appropriation in the statement of financial performance; or  transferred to receivables for recovery.

Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure.

17 Fruitless and wasteful expenditure Fruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred. Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or

- 40 -

184 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 185 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

transferred to receivables or written off.

Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.

18 Irregular expenditure Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the value of the irregular expenditure incurred unless it is impracticable to determine, in which case reasons therefor are provided in the note.

Irregular expenditure is removed from the note when it is either condoned by the relevant authority, transferred to receivables for recovery, not condoned and removed or written-off. Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are derecognised when settled or subsequently written-off as irrecoverable.

19 Changes in accounting estimates and errors Changes in accounting estimates are applied prospectively in accordance with MCS requirements. Correction of errors is applied retrospectively in the period in which the error has occurred in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the error.In such cases the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.

20 Events after the reporting date Events after the reporting date that are classified as adjusting events have been accounted for in the financial statements.The events after the reporting date that are classified as non-adjusting events after the reporting date have been disclosed in the notes to the financial statements.

21 Principal-Agent arrangements The department is party to a principal-agent arrangement for municipalities which collect revenue in terms of the Road Traffic Act on its behalf. In terms of the arrangement the department is the principal and is responsible to pay agency fee (commission) as per signed service level agreement. All related revenues, expenditures, assets and liabilities have been recognised or recorded in terms of the relevant policies listed herein. Additional disclosures have been provided in the notes to the financial statements where appropriate.

22 Departures from the MCS requirements The Department has complied with the provision of Modified Cash Standard.

25 Capitalisation reserve The capitalisation reserve comprises of financial assets and/or liabilities originating in a prior reporting period, but which are recognised in the statement of financial position for the first time in the current reporting period. Amounts are recognised in the capitalisation reserves when identified in the current period and are transferred to the National/Provincial Revenue Fund when the underlying asset is disposed, and the related funds are received.

26 Recoverable revenue Amounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off.

27 Related party transactions

- 41 -

184 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 185 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

Related party transactions within the MEC’s portfolio are recorded in the notes to the financial statements when the transaction is not at arm’s length. The number of individuals and the full compensation of key management personnel is recorded in the notes to the financial statements.

28 Inventories At the date of acquisition, inventories are recognised at cost in the statement of financial performance. Where inventories are acquired as part of a non-exchange transaction, the inventories are measured at fair value as at the date of acquisition. Inventories are subsequently measured at the lower of cost and net realisable value or where intended for distribution (or consumed in the production of goods for distribution) at no or a nominal charge, the lower of cost and current replacement value. The cost of inventories is assigned by using the weighted average cost basis.

29 Public-Private Partnerships Public Private Partnerships are accounted for based on the nature and or the substance of the partnership. The transaction is accounted for in accordance with the relevant accounting policies. A summary of the significant terms of the PPP agreement, the parties to the agreement, and the date of commencement thereof together with the description and nature of the concession fees received, the unitary fees paid, rights and obligations of the department are recorded in the notes to the financial statements.

30 Employee benefits The value of each major class of employee benefit obligation (accruals, payables not recognised and provisions) is disclosed in the Employee benefits note.

31 Transfers of functions Transfers of functions are accounted for by the acquirer by recognising or recording assets acquired and liabilities assumed at their carrying amounts at the date of transfer. Transfers of functions are accounted for by the transferor by derecognising or removing assets and liabilities at their carrying amounts at the date of transfer.

- 42 -

186 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 187 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

1. Annual Appropriation 1.1 Annual Appropriation Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for Provincial Departments: 2019/20 2018/19 Final Actual Funds not Final Appropriation Funds not Appropriation Funds requested/ Appropriation received requested Received not /not received received R’000 R’000 R’000 R’000 R’000 Administration 383 279 383 279 - 332 154 332 154 - Transport Infrastructure 2 240 490 2 240 490 - 2 825 907 2 825 907 - Transport Operations 2 689 995 2 689 995 - 2 537 507 2 537 507 - Transport Regulation 332 942 332 942 - 294 077 294 077 - Gautrain 2 153 314 2 153 314 - 1 945 268 1 945 268 - Total 7 800 020 7 800 020 - 7 934 913 7 934 913 -

1.2. Conditional grants Note 2019/20 2018/19 R’000 R’000 Total grants received 34 3 209 966 3 043 023

2. Departmental revenue Tax revenue 4 135 192 3 961 563 Sales of goods and services other than capital assets 2.1 60 683 58 464 Interest, dividends and rent on land 2.2 13 14 Transactions in financial assets and liabilities 2.3 327 22 187 Total revenue collected 4 196 215 4 042 228 Less: Own revenue included in appropriation - - Departmental revenue collected 4 196 215 4 042 228

2.1 Sales of goods and services other than capital assets

Sales of goods and services produced by the department 60 656 58 462 Sales by market establishment 429 367 Administrative fees 54 984 52 804 Other sales 5 243 5 291 Sales of scrap, waste and other used current goods 27 2 Total 60 683 58 464

- 43 -

186 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 187 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

2.2 Interest, dividends and rent on land Note 2019/20 2018/19 2 R’000 R’000 Interest 13 14 Total 13 14

2.3 Transactions in financial assets and liabilities Receivables 217 693 Stale cheques written back 2 - Other Receipts including Recoverable Revenue 108 21 494 Total 327 22 187

3. Compensation of employees

3.1 Salaries and Wages Basic salary 451 901 439 076 Performance award 9 631 10 238 Service Based 535 1 498 Compensative/circumstantial 15 983 19 896 Periodic payments 8 530 4 019 Other non-pensionable allowances 86 685 83 873 Total 573 265 558 600

3.2 Social contributions Employer contributions Pension 58 668 56 643 Medical 41 327 38 322 Bargaining council 166 157 Total 100 161 95 122

Total compensation of employees 673 426 653 722

Average number of employees 1 746 1 795

- 44 -

188 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 189 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

4. Goods and services

Note 2019/20 2018/19 R’000 R’000 Administrative fees 3 913 2 389 Advertising 3 245 5 725 Minor assets 4.1 328 1 477 Bursaries (employees) 99 1 409 Catering 1 736 1 996 Communication 8 776 6 573 Computer services 4.2 27 718 18 041 Consultants: Business and advisory services 38 127 24 714 Infrastructure and planning services 26 985 25 801 Laboratory services 262 1 979 Legal services 14 831 18 448 *Contractors 1 248 622 1 259 268 Agency and support / outsourced services 150 - Audit cost – external 4.3 7 706 6 251 Fleet services 8 987 7 595 Inventory 4.4 27 187 45 795 Consumables 4.5 68 187 78 454 Operating leases 25 265 24 008 Property payments 4.6 60 594 56 621 Transport provided as part of the departmental activities 163 29 Travel and subsistence 4.7 13 474 12 604 Venues and facilities 5 517 2 545 Training and development 10 096 6 416 Other operating expenditure 4.8 - 8 Total 1 601 968 1 608 146

*The related item relates to routine road repairs maintenance undertaken by the Department during the applicable financial periods.

4.1 Minor assets Tangible assets 328 1 477 Machinery and equipment 328 1 477 Total 328 1 477

4.2 Computer services SITA computer services 1 982 - *External computer service providers 25 736 18 041 Total 27 718 18 041

*The increase in expenditure during the year under review is mainly relating to annual Microsoft Licence fees for 2020/21 amounting to R7.4 million paid in line with the contractual agreement.

4.3 Audit cost – External Regularity audits 7 337 5 933 Computer audits 369 318 Total 7 706 6 251

- 45 -

188 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 189 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

4.4 Inventory Note 2019/20 2018/19 4 R’000 R’000 Clothing material and accessories 2 015 2 387 Materials and supplies 18 816 27 749 *Other supplies 4.4.1 6 356 15 659 Total 27 187 45 795

*The related expenditure is for the purchasing for “Face Value” forms from Government Printing Works for the printing of vehicle licences and permits.

4.4.1 Other supplies Other 6 356 15 659 Total 6 356 15 659

4.5 Consumables Consumable supplies 1 677 2 277 Uniform and clothing 179 - Household supplies 857 1 419 Building material and supplies 387 498 IT consumables 190 113 Other consumables 64 247 Stationery, printing and office supplies 66 510 76 177 Total 68 187 78 454

4.6 Property payments Municipal services 29 137 28 332 *Other 31 457 28 289 Total 60 594 56 621

*The related expenditure is in relation to payments made for security services within the Department.

4.7 Travel and subsistence Local 13 452 12 354 Foreign 22 250 Total 13 474 12 604

4.8 Other operating expenditure Resettlement costs - 8 Total - 8

5. Interest and rent on land Interest paid 17 14 652 Total 17 14 652

- 46 -

190 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 191 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

6. Payments for financial assets

Note 2019/20 2018/19 R’000 R’000 Debts written off 6.1 16 85 Total 16 85

6.1 Debts written off Ex-Employees 16 85 Total 16 85

7. Transfers and subsidies

Note Provinces and municipalities 36 1 939 1 900 Departmental agencies and accounts Annexure 1B 2 153 314 1 945 268 Public corporations and private enterprises Annexure 1C 2 167 572 2 239 153 Households Annexure 1E 7 427 50 155 Total 4 330 252 4 236 476

8. Expenditure for capital assets Tangible assets 551 847 1 049 465 Buildings and other fixed structures 32 544 247 1 034 803 Machinery and equipment 30 7 600 14 662

Intangible assets 5 291 12 764 Software 31 5 291 12 764

Total 557 138 1 062 229

8.1 Analysis of funds utilised to acquire capital assets – 2019/20 Voted funds Aid assistance Total R’000 R’000 R’000 Tangible assets 551 847 - 551 847 Buildings and other fixed structures 544 247 - 544 247 Machinery and equipment 7 600 - 7 600

Intangible assets 5 291 - 5 291 Software 5 291 - 5 291

Total 557 138 - 557 138

- 47 -

190 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 191 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

8.2 Analysis of funds utilised to acquire capital assets – 2018/19 Voted funds Aid assistance Total R’000 R’000 R’000 Tangible assets 1 049 465 - 1 049 465 Buildings and other fixed structures 1 034 803 - 1 034 803 Machinery and equipment 14 662 - 14 662

Intangible assets 12 764 - 12 764 Software 12 764 - 12 764

Total 1 062 229 - 1 062 229

8.3 Finance lease expenditure included in Expenditure for capital assets Note 2019/20 2018/19 R’000 R’000 Tangible assets Machinery and equipment 2 330 2 453

Total 2 330 2 453

9. Unauthorised expenditure - - Total - -

The Department is alleged to have incurred Unauthorised expenditure amounting to R100 million and R130 million in 2015/16 and 2016/17 financial year respectively relating to the management of Public Transport Operation Grant-Bus Subsidies. Such allegations and recommendations are contained in an investigation report initiated by the Gauteng Provincial Treasury. During 2019/20 financial year the Head of Department accepted the forensic report and the implicated personnel have been put on special leave to enable the Department to implement the findings of the report. In the process of implementing the recommendations of the report, it became evident that there are certain findings which require clarification from the Forensic Auditors to ensure appropriate implementation of the report.

As the Department is not disregarding to the report but clarification still needs to be sought from the forensic auditors, it will be impractical to list the items raised in the report as unauthorised expenditure. The Department will be engaging with the investigators as part of implementing the report and the assessment of progress on the implementation of the report will be performed in the following year’s audit. Any confirmed unauthorised expenditure emanating from this process will be addressed appropriately in the forthcoming financial years in line with the requirements of the Modified Cash Standard.

10. Cash and cash equivalents Consolidated Paymaster General Account 1 019 990 701 470 Cash on hand 59 79 Total 1 020 049 701 549

- 48 -

192 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 193 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

11. Prepayments and advances

11.1 Prepayments (Expensed) Note Amount as at Less: Add or Less: Add: Current Amount as at 1 April 2019 Received in Other Year 31 March the current prepayments 2020 year R’000 R’000 R’000 R’000 R’000 *Goods and services 27 (27) - 7 443 7 443 Total 27 (27) - 7 443 7 443

*This balance is mainly relating to payments made to Microsoft for annual licence fees.

Note Amount as at Less: Add or Less: Add: Current Amount as at 1 April 2018 Received in Other Year 31 March the current prepayments 2019 year R’000 R’000 R’000 R’000 R’000 Goods and services 3 311 (3 311) - 27 27 Total 3 311 (3 311) - 27 27

11.2 Advance (Expensed) Note Amount as Less: Received Add or Less: Add: Current Amount as at at 1 April in the current Other Year 31 March 2019 year prepayments 2020 R’000 R’000 R’000 R’000 R’000 *National departments - - - 1 253 1 253 Total - - - 1 253 1 253

*This balance is mainly relating to payments made to National School of Government to conduct trainings to employees of the Department.

- 49 -

192 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 193 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

12 Receivables

2019/20 2018/19 Current Non-current Total Current Non-current Total R’000 R’000 R’000 R’000 R’000 R’000

Note Claims recoverable 11.1 448 - 448 14 - 14 Recoverable expenditure 11.2 193 - 193 369 - 369 Staff debt 11.3 2 684 - 2 684 2 252 - 2 252 Other receivables 11.4 - 786 786 - 786 786 Total 3 325 786 4 111 2 635 786 3 421

12.1 Claims recoverable Note 2019/20 2018/19 11 and Annex 3 R’000 R’000 Provincial departments - 14 Public entities 448 - Total 448 14

12.2 Recoverable expenditure (disallowance accounts) Sal:Reversal Control:CA - 114 Deposit Account:Dom 180 181 Receipt Deposit Control:Dom - 72 Sal:Tax Debt:CA 13 1 Pension Recoverable Acc - 1 Total 193 369

12.3 Staff debt Breach of Contract Ex-Employees 286 266 Employees 193 170 *Ex-Employees 2 104 1 725 Supplier 101 91 Total 2 684 2 252

* The Department charge interest on ex-employees in line with the prescribed interest rate as issued and updated by National Treasury.

12.4 Other receivables

Note 2019/20 2018/19

R’000 R’000 *Other 786 786 Total 786 786

* Included in other debtors is amount that relates to security deposit for the building leased for the Xavier DLTC.

12.5 Impairment of receivables Estimate of impairment of receivables 134 164 Total 134 164

- 50 -

194 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 195 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

13 Voted funds to be surrendered to the Revenue Fund

Note 2019/20 2018/19 R’000 R’000 Opening balance 359 603 295 380 Prior period error - - As restated 359 603 295 380 Transfer from statement of financial performance (as restated) 637 203 359 603 Paid during the year (359 603) (295 380) Closing balance 637 203 359,603

14 Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund Opening balance 343 453 325 142 Prior period error - - As restated 343 453 325 142 Transfer from Statement of Financial Performance (as restated) 4 196 215 4 042 228 Paid during the year (4 154 987) (4 023 917) Closing balance 384 681 343,453

15 Payables – current

Other payables 14.1 560 367 Total 560 367

15.1 Other payables Sal:ACB Recalls:CA - 97 Sal:Pension Fund:CL - 1 Sal:Income Tax:CL 344 123 Oustanding Payments:Dom - 25 Bank Adjustment Acc:Dom 164 119 Cancel Cheque/Re-Issue (Pers) - 2 EBT Rejection Acc:Dom 40 - Sal:Reversal Control:ACC 6 - Sal:Garnishee Order:CL 6 - Total 560 367

- 51 -

194 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 195 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

16 Net cash flow available from operating activities Note 2019/20 2018/19 R’000 R’000 Net surplus/(deficit) as per Statement of Financial Performance 4 833 418 4 401 831 Add back non-cash/cash movements not deemed operating activities (3 957 949) (3 257 528) (Increase)/decrease in receivables (690) 595 (Increase)/decrease in prepayments and advances - - (Increase)/decrease in other current assets - - Increase/(decrease) in payables – current 193 (1 055) Proceeds from sale of capital assets - Proceeds from sale of investments - (Increase)/decrease in other financial assets - - Expenditure on capital assets 557 138 1 062 229 Surrenders to Revenue Fund (4 514 590) (4 319 297) Surrenders to RDP Fund/Donor - - Voted funds not requested/not received - - Own revenue included in appropriation - - Other non-cash items - - Net cash flow generated by operating activities 875 469 1 144 303

16.1 Reconciliation of cash and cash equivalents for cash flow purposes Consolidated Paymaster General account 1 019 990 701 470 *Cash on hand 59 79 Total 1 020 049 701 549

*The decrease is mainly due to closure of petty cash bank accounts in other regional offices within the Departments, these accounts were no longer required or necessary due to realignment of processes.

- 52 -

196 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 197 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

17 Contingent17 Contingent liabilities liabilities and contingent and contingent assets asset s

17.1 Contingent liabilities Note 2019/20 2018/19 R’000 R’000 Liable to Nature Claims against the department Annex 2A 296 067 656 180 Intergovernmental payables (unconfirmed balances) Annex 4 4,419 606 *Other Annex 2A - - Total 300,486 656 786

*Other: The Department on behalf of the Gauteng Province has in existence a concession agreement with Bombela Consortium for the design, construction and operation of a rapid rail link between Pretoria and Johannesburg, and Johannesburg and O.R. Tambo International Airport, consisting of 80km’s of rail and 10 stations. Included as part of the concession agreement are the terms and conditions under which a Patronage Guarantee is paid to the Concessionaire to ensure sustained quality services.

The amount paid is assessed on the difference between Minimum Required Total Revenue and the Actual Total Revenue as defined in the Concession Agreement after considering the actual performance of the Concessionaire during the period under review. It is foreseen that a Patronage Guarantee will be paid for the next 12 months. However, no reliable estimate of the amount payable can be established at this stage of the process due to the uncertainty surrounding the nature and timing of the events that contribute to the determination of the Patronage Guarantee. The management and oversight of the concession agreement for the Gautrain Rapid Rail Link Project is undertaken by the Gautrain Management Agency, a schedule 3C provincial public entity which was established in terms of the Gautrain Management Act, Act No 5 of 2006.

17.2 Contingent assets Note 2019/20 2018/19 R’000 R’000 Nature of contingent asset Construction of Road K174 interchange (R42) with R59 (P156-2) 82 822 82 822 Design and review of various intersections within Allandale and Woodmead Road 97 410 97 410 Construction for the upgrade of provincial road 374 (Beyers Naude Avenue) 10 000 10 000 Total 190 232 190 232

The Department discloses contingent assets in line with the Modified Cash Standard. The currently disclosed contingent assets arise from contribution agreements signed between a property developer and the Department. The contribution agreements provide for a possible asset to the Department in the form of various contributions that are relevant to the applicable project. The realisation of these various contribution will only be determined on the completion of the applicable project. The following projects are disclosed as contingent assets during the year under review.

The amount disclosed is the best estimate of the potential financial effect for the department: Road K174-The scope of work to be undertaken constitutes the investigation, survey, preliminary design, detail design, construction and monitoring of the project by a Professional Civil Engineer (ECSA registered).

Allandale and Woodmead road- The scope of work to be undertaken constitutes the investigation, survey, preliminary design, detail design, construction and monitoring of the project by a Professional Civil Engineer (ECSA registered).

Road 374- The scope of work to be undertaken constitutes the investigation, survey, preliminary design, detail design, construction and monitoring of the project by a Professional Civil Engineer (ECSA registered).

- 53 -

196 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 197 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

18 Commitments

Note 2019/20 2018/19 R’000 R’000 Capital expenditure 1 235 Building and other fixed structures 1 011 082 829 Total 1 235 1 011 082 829

Annual improvements on Modified Cash Standard (MCS) as amended requires only the disclosure of commitments on capital expenditure. These changes have significantly reduced the overall value of commitment by approximately R2 billion which amongst other includes bus subsidy and road maintenance contracts.

19 Accruals and payables not recognised 19.1 Accruals 2019/20 2018/19 R’000 R’000 Listed by economic classification 30 Days 30+ Days Total Total Goods and services 13,086 - 13,086 22 590 Interest and rent on land - - - - Transfers and subsidies 24 - 24 10 756 Capital assets 35,908 - 35,908 43 653 Other 34,430 - 34,430 38 352 Total 83,448 - 83,448 115 351

Listed by programme level Administration 7,654 19 705 Transport Infrastructure 35,979 44 677 Transport Operations - 8 336 Transport Regulations 39,815 42 633 Total 83,448 115 351

- 54 -

198 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 199 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

19.2 Payables not recognised 2019/20 2018/19 R’000 R’000 Listed by economic classification 30 Days 30+ Days Total Total Goods and services 1,234 - 1,234 266 Interest and rent on land - - - - Transfers and subsidies - - - - Capital assets 21,669 - 21,669 - Other - - - 31 Total 22,903 - 22,903 297

Listed by programme level Administration 1,159 162 Transport Infrastructure 21,744 104 Transport Operations - - Transport Regulations - 31

Total 22,903 297

Note 2019/20 2018/19 Included in the above totals are the following: R’000 R’000 Confirmed balances with other departments Annex 4 682 1 467 Confirmed balances with other government entities Annex 4 36,328 40 078 Total 37,010 41 545

Employee benefits 20 Employee benefits Note 2019/20 2018/19 R’000 R’000 *Leave entitlement 39 642 34 977 Service bonus 19 623 19 044 Performance awards 5 993 10 802 Capped leave 19,000 21 078 **Other 981 885 Total 85 239 86 786

*Included herein is negative leave entitlement to the value of R 298,026.46 which occurred as a result of the pro-rata calculation of leave taken as at 31 March 2020.

**This estimate amount is mainly relating to long service awards due to employees for serving the Department for longer than 20,30 and 40 years respectively.

- 55 -

198 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 199 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

21 Lease commitments

21.1 Operating leases Buildings and Specialised other fixed Machinery and military structures equipment 2019/20 equipment Land Total R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - 6,024 8 705 14,729 Later than 1 year and not later than 5 years - - - 4 351 4 351

Later than five years - - - - - Total lease commitments - - 6,024 13 056 19,080

Buildings and Specialised other fixed Machinery and military structures equipment 2018/19 equipment Land Total R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - 6 057 11 498 17 555 Later than 1 year and not later than 5 years - - 688 8 466 9 154 Later than five years - - - - - Total lease commitments - - 6 745 19 964 26 709 21.2 Finance leases ** Buildings and Specialised other fixed Machinery and military structures equipment 2019/20 equipment Land Total R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - - 2 416 2 416 Later than 1 year and not later than 5 years - - - 985 985 Later than five years - - - - - Total lease commitments - - - 3 401 3 401

Buildings and Specialised other fixed Machinery and military structures equipment 2018/19 equipment Land Total R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - - 4 121 4 121 Later than 1 year and not later than 5 years - - - 2 189 2 189 Later than five years - - - - - Total lease commitments - - - 6 310 6 310

- 56 -

200 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 201 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

22 AccruedAccrued departmentaldepartmental revenuerevenue Note 2019/20 2018/19 R’000 R’000 Tax revenue 535 528 519 285 Total 535 528 519 285

22.1 Analysis of accrued departmental revenue Opening balance 519 285 427 387 Less:amounts received (4 135 192) (3 961 563) Add:amounts recorded 4,172,572 4 071 422 Less:amounts written-off/reversed as irrecoverable (21 137) (17 961) Closing balance 535 528 519 285

22.2 Accrued department revenue written off Nature of losses **Writing off interest in relation to outstanding road traffic act fees 21 137 17 961 Total 21 137 17 961

**In terms of the signed service level agreements (SLA), the Department levies interest revenue collected on behalf of the Department by the approved agencies in relation to Motor Vehicle Licence and Registration but which has not yet been paid over to the Department at financial year end. During each of the applicable financial years, the Department performs an assessment on the recoverability of interest levied which results in the relevant approval for write off.

- 57 -

200 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 201 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

23 23 IrregularIrregular expenditureexpenditure

23.1 Reconciliation of irregular expenditure Note 2019/20 2018/19 R’000 R’000 Opening balance 4 471 314 2 212 198 Prior period error - - As restated 4 471 314 2 212 198 Add: Irregular expenditure – relating to prior year - - Add: Irregular expenditure – relating to current year 2,167,575 2 259 116 Closing balance 6,638,889 4 471 314

Analysis of awaiting condonation per age classification Current year 2,167,575 2 259 116 Prior years 4 471 314 2 212 198 Total 6,638,889 4 471 314

23.2 Details of current and prior year irregular expenditure – added current year (under determination and investigation) Incident Disciplinary steps taken/criminal proceedings 2019/20 R’000 Extension of Bus subsidy contracts devolved from the National Department of Transport The Department has referred this expenditure to the (NDoT). Provincial Treasury for review and condonation. 2 167 575 Total 2 167 575

23.3 Details of irregular expenditure condoned Incident Condoned by (relevant authority) 2019/20 R’000 - Total -

In addition to above irregular expenditure, the Department is alleged to have incurred irregular expenditure amounting to R210 968 000 relating to the construction of road K46 (P79/1) between PWV5 and N14 (P158/2) (Diepsloot)–Phase 2 as well on management of Public Transport Operation Grant (PTOG)- Bus subsidies. Such allegations and recommendations are contained in an investigation reports initiated by the Gauteng Provincial Treasury. During 2019/20 financial year the Head of Department accepted the forensic reports and the implicated personnel have been put on special leave to enable the Department to implement the findings of the report. In the process of implementing the recommendations of the report, it became evident that there are certain findings which require clarification from the Forensic Auditors to ensure appropriate implementation of the reports.

As the Department is not disregarding to the reports but clarification still needs to be sought from the forensic auditors, it will be impractical to list the items raised in the reports as fruitless and wasteful expenditure. The Department will be engaging with the investigators as part of implementing the reports and the assessment of progress on the implementation of the reports will be performed in the following year’s audit. Any confirmed irregular expenditure emanating from this process will be addressed appropriately in the forthcoming financial years in line with the requirements of the Modified Cash Standard.

- 58 -

202 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 203 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

24 Fruitless and wasteful expenditure

24.1 Reconciliation of fruitless and wasteful expenditure

Note 2019/20 2018/19 R’000 R’000 Opening balance 59 226 - Prior period error - - As restated - - Fruitless and wasteful expenditure – relating to prior year - - Fruitless and wasteful expenditure – relating to current year 272 59 226 Less: Amounts recoverable - - Less: Amounts written off - - Closing balance 59,498 59 226

24.2 Details of current and prior year fruitless and wasteful expenditure – added current year (under determination and investigation) Incident Disciplinary steps taken/criminal proceedings 2019/20 R’000 Interest paid on late payments Under Investigation 6 Court Order Under Investigation 266 Total 272

In addition to above fruitless and wasteful expenditure, the Department is alleged to have incurred fruitless expenditure amounting to R166 949 000 relating to the construction of road K46 (P79/1) between PWV5 and N14 (P158/2) (Diepsloot) – Phase 2 as well on management of Public Transport Operation Grant (PTOG)- Bus subsidies. Such allegations and recommendations are contained in an investigation reports initiated by the Gauteng Provincial Treasury. During 2019/20 financial year the Head of Department accepted the forensic reports and the implicated personnel have been put on special leave to enable the Department to implement the findings of the report. In the process of implementing the recommendations of the report, it became evident that there are certain findings which require clarification from the Forensic Auditors to ensure appropriate implementation of the reports.

As the Department is not disregarding to the reports but clarification still needs to be sought from the forensic auditors, it will be impractical to list the items raised in the reports as fruitless and wasteful expenditure. The Department will be engaging with the investigators as part of implementing the reports and the assessment of progress on the implementation of the reports will be performed in the following year’s audit. Any confirmed fruitless and wasteful expenditure emanating from this process will be addressed appropriately in the forthcoming financial years in line with the requirements of the Modified Cash Standard.

- 59 -

202 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 203 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

25 Related party transactions

Revenue received Note 2019/20 2018/19 R’000 R’000 Tax revenue - - Total - -

The Gauteng Department of Roads and Transport is related to its two (2) entities under the control of the MEC; g-FleeT Management and Gautrain Management Agency (GMA), below are transactions made to both entities during the financial year (2019/20): g-Fleet Management R 21.673 and R 1.883 million respectively which are payments made for fleet services and salaries, these transactions were at arm’s length. Gautrain Management Agency (GMA) R 2.153 billion (Total value of transfer payments made during the year).

In addition, two Gauteng Provincial Departments namely Department of Health and Department of Infrastructure Development were requested to procure Covid-19 Personnel Protective Equipment and sanitizers on behalf of the Department.

Key Management Personnel are deemed to be related parties, for 2019/20 financial year a total amount of R 16.590 million was paid as compensation to Key Management Personnel. Please refer to note 26 for a detailed breakdown of payments made in 2019/20 financial year as compensation to Key Management Personnel.

26 Key management personnel No. of Individuals 2019/20 2018/19 R’000 R’000 Political office bearers (provide detail below) 2 1 789 1 978 Officials: Level 15 to 16 3 5 067 7 383 Level 14 (incl CFO if at a lower level) 7 9 734 10 389 Family members of key management personnel - - Total 16 590 19 750

The key management personnel identified by the Department are those persons having the authority and responsibility for planning, directing and controlling the activities of the department and can exercise significant influence and the power to participate in the financial and operating policy decision of the Department. During the year under review (2019/20), the Gauteng Premier duly appointed an official from outside the Department’s organisational structure to perform the function of Acting Accounting Officer until August 2020.

27 Public Private Partnership Note 2019/20 2018/19 R’000 R’000 Concession fee received 2 153 314 1 945 268 MTEF 2 153 314 1 945 268

The Department on behalf of the Gauteng Province has in existence a concession agreement with Bombela Consortium for the design, construction and operation of a rapid rail link between Pretoria and Johannesburg, and Johannesburg and O.R. Tambo International Airport, consisting of 80km’s of rail and 10 stations. The management and oversight of the concession agreement for the Gautrain Rapid Rail Link Project is undertaken by the Gautrain Management Agency, a schedule 3C provincial public entity which was established in terms of the Gautrain Management Act, Act No 5 of 2006.

During 2019/20 financial year, The Department transferred R2.153 billion to ensure business continuity and service delivery. For additional information pertaining to Gautrain asset please refer to GMA Annual Financial Statements.

- 60 -

204 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 205 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

28 Provisions

2019/20 2018/19 R’000 R’000 Retention 28.1 29 423 37 942 Total 29 423 37 942

28.1 Reconciliation of movement in provisions – 2019/20 Provision 1 Provision 2 Provision 3 Total provisions R’000 R’000 R’000 R’000 Opening balance 37 942 - - 37 942 Increase in provision 10 762 - - 10 762 Settlement of provision (22 641) - - (22 641) Unused amount reversed 3 360 - - 3 360 Closing balance 29 423 - - 29 423

Reconciliation of movement in provisions – 2018/19 Provision 1 Provision 2 Provision 3 Total provisions R’000 R’000 R’000 R’000 Opening balance 21 254 - - 21 254 Increase in provision 25 122 - - 25 122 Settlement of provision (11 215) - - (11 215) Unused amount reversed 2 781 - - 2 781 Closing balance 37 942 - - 37 942

29 Non-adjusting events after reporting date 2019/20 Nature of event R’000 Include an estimate of the financial effect of the subsequent non-adjusting events or a statement that such an estimate cannot be made. -

Total -

The international Corona Virus (COVID-19) pandemic has been an unprecedented and unforeseen event which has impacted negatively on the social and economic welfare of all countries world-wide.

The declaration of a state of disaster by President of the Republic of South Africa ushered in an array of legislative measures, amongst them being a national period of lockdown commencing 27th March 2020. Such date of commenced coincided with the last 4 days of the Department’s 2019/2020 financial year end. The economic impact of the national lockdown has been extremely severe on all business activities which has translated in the loss of many jobs. The Department continued to provide essential services during this period of national lockdown. In support of all essential services, i.e. law enforcement, health care, banking and other designated services the Department identified the strategic need to respond to the pandemic by focussing on preventing the loss of lives both within the Department and that of the users of public transport within the Province. As guided by research, with most people within the province using public transport, the probability of an alarming increase in the spread of COVID-19 through the aid of public transport is extremely high and dangerous for the people of Gauteng.

The Department’s financial response to support its strategic pandemic response plan resulted in parts of the 2020/2021 budget being reprioritised towards COVID-19 priorities. In addition, the Department acted as a conduit in the receiving of COVID-19 personal protective equipment (PPE) for use within the public transport environment for the protection of public transport commuters. For the 2019/2020 financial year, the Department received approximately R300 000 worth of PPE from different donors for the benefit of the public transport operators.

- 61 -

204 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 205 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

30 Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Opening Value Additions Disposals Closing balance adjustments Balance R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 481,105 265 5,114 (24) 486,460 Transport assets 368,547 15 - - 368,562 Computer equipment 51,194 11 3,184 (14) 54,375 Furniture and office equipment 24,337 5 243 - 24,585 Other machinery and equipment 37,027 234 1,687 (10) 38,938

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 481,105 265 5,114 (24) 486,460

Movable Tangible Capital Assets under investigation Number Value R’000 Included in the above total of the movable tangible capital assets per the asset register are assets that are under investigation: Machinery and equipment 1 679 36 767

Included in the asset register are year-end unverified assets totalling R36.767 million. The COVID-19 pandemic had negatively impacted the Department’s final stages of its annual verification process. The unverified items have been clearly identified as not yet verified within the asset register and are being followed up on through internal investigation processes in order identify the need for any adjustments to the asset register. These adjustments if necessary will be undertaken during the 2020/2021 financial year in line with the requirements of the Modified Cash Standard.

30.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Cash Non-cash (Capital Work Received Total in Progress current, not paid current costs (Paid current and finance year, received lease prior year) payments) R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 7,600 - (2,330) (156) 5,114 Transport assets 900 - (900) - - Computer equipment 3,212 - - (28) 3,184 Furniture and office equipment 243 - - - 243 Other machinery and equipment 3,245 - (1,430) (128) 1,687

TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 7,600 - (2,330) (156) 5,114

- 62 -

206 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 207 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

30.2 Disposals DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Sold for cash Non-cash Total Cash Received Actual disposal disposals R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT - 24 24 - Transport assets - - - - Computer equipment - 14 14 - Furniture and office equipment - - - - Other machinery and equipment - 10 10 -

TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS - 24 24 -

30.3 Movement for 2018/19 MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019 Opening Prior period Additions Disposals Closing balance error Balance R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 471 218 48 11 694 (1 855) 481,105 Transport assets 370 048 - - (1 501) 368,547 Computer equipment 47 559 (23) 4 012 (354) 51,194 Furniture and office equipment 23 727 9 601 - 24,337 Other machinery and equipment 29 884 62 7 081 - 37,027

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 471,218 48 11 694 (1 855) 481,105

30.2.1 Prior period error Note 2018/19 R’000 Nature of prior period error Relating to 2018/19 48 Addition was erroneously overstated 48

Total prior period errors 48

- 63 -

206 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 207 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

30.3 Minor assets MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2020 Specialised Intangible Heritage Machinery Biological Total military assets assets assets and assets equipment R’000 R’000 R’000 R’000 R’000 R’000 Opening balance - 21 - 40 116 - 40 137

Value adjustments - - - 161 - 161 Additions - - - 328 - 328 Disposals - - - (12) - (12)

TOTAL MINOR ASSETS - 21 - 40 593 - 40 614

Specialised Intangible Heritage Machinery Biological Total military assets assets assets and assets equipment Number of R1 minor assets - - - 133 - 133 Number of minor assets at cost - 8 - 29 828 - 29 836 TOTAL NUMBER OF MINOR ASSETS - 8 - 29 961 - 29 969

Minor Capital Assets under investigation Number Value R’000 Included in the above total of the minor capital assets per the asset register are assets that are under investigation: Machinery and equipment 7 339 9 628

Included in the asset register are year-end unverified minor assets totalling R9.628 million. The COVID-19 pandemic had negatively impacted the Department’s final stages of its annual verification process. The unverified items have been clearly identified as not yet verified within the asset register and are being followed up on through internal investigation processes in order identify the need for any adjustments to the asset register. These adjustments if necessary will be undertaken during the 2020/2021 financial year in line with the requirements of the Modified Cash Standard.

- 64 -

208 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 209 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2019 Specialised Intangible Heritage Machinery Biological Total military assets assets assets and assets equipment R’000 R’000 R’000 R’000 R’000 R’000 Opening balance - 21 - 38 729 - 38 750 Prior period error - - - (4) - (4) Additions - - - 1 578 - 1 578 Disposals - - - (187) - (187)

TOTAL MINOR ASSETS - 21 - 40 116 - 40 137

Specialised Intangible Heritage Machinery Biological Total military assets assets assets and assets equipment Number of R1 minor assets - - - 7 - 7 Number of minor assets at cost - 8 - 29 532 - 29 540 TOTAL NUMBER OF MINOR ASSETS - 8 - 29 539 - 29 547

30.4.1 Prior period error Note 2018/19 R’000 Nature of prior period error Relating to 2018/19 [affecting the opening balance] (4) Addition was erroneously overstated (4) Relating to 2018/19 -

Total prior period errors (4)

30.3 Movable assets written off MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2020 Specialised Intangible Heritage Machinery Biological Total military assets assets assets and assets equipment R’000 R’000 R’000 R’000 R’000 R’000 Assets written off ------TOTAL MOVABLE ASSETS WRITTEN OFF ------

- 65 -

208 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 209 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

31 Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Opening Value Additions Disposals Closing balance adjustments Balance R’000 R’000 R’000 R’000 R’000 SOFTWARE 25 793 - 18,055 - 43,848

TOTAL INTANGIBLE CAPITAL ASSETS 25 793 - 18,055 - 43,848

31.1 Additions ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Cash Non-Cash (Development Received Total work in current year, progress – not paid current (Paid current costs) year, received prior year) R’000 R’000 R’000 R’000 R’000 SOFTWARE 5,291 12,764 - - 18,055

TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS 5,291 12,764 - - 18,055

31.2 Movement for 2018/19 MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019 Opening Prior period Additions Disposals Closing balance error Balance R’000 R’000 R’000 R’000 R’000 SOFTWARE 25 793 - - - 25 793

TOTAL INTANGIBLE CAPITAL ASSETS 25 793 - - - 25 793

- 66 -

210 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 211 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

32 Immovable Tangible Capital Assets

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Opening Value Additions Disposals Closing balance adjustments Balance R’000 R’000 R’000 R’000 BUILDINGS AND OTHER FIXED STRUCTURES 40,421,969 - 497,174 - 40,919,143 Other fixed structures 40,421,969 - 497,174 - 40,919,143

LAND AND SUBSOIL ASSETS 350 629 - 35 268 - 385 897 Land 350 629 - 35 268 - 385 897

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS 40,772,598 - 532,442 - 41,305,040

32.2 Additions ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Cash Non-cash (Capital Work in Received Total Progress current current, not paid costs and (Paid current finance lease year, received payments) prior year) R’000 R’000 R’000 R’000 R’000 BUILDING AND OTHER FIXED STRUCTURES 508 979 425 652 (437,457) - 497,174 Other fixed structures 508 979 425 652 (437,457) - 497,174

LAND AND SUBSOIL ASSETS 35 268 - - - 35 268 Land 35 268 - - - 35 268

TOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS 544 247 425 652 (437,457) - 532,442

- 67 -

210 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 211 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

Disposals DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Sold for cash Non-cash Total Cash disposal disposals Received Actual R’000 R’000 R’000 R’000 BUILDINGS AND OTHER FIXED STRUCTURES - - - - Other fixed structures - - - -

LAND AND SUBSOIL ASSETS - - - - Land - - - -

TOTAL DISPOSALS OF

IMMOVABLE TANGIBLE CAPITAL ASSETS - - - -

32.3 Movement for 2018/19 MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019 Opening Prior period Additions Disposals Closing balance error Balance R’000 R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES 39 521 626 (203) 902 099 (1 553) 40,421,969 Other fixed structures 39 521 626 (203) 902 099 (1 553) 40,421,969

LAND AND SUBSOIL ASSETS 254 297 - 96 332 - 350 629 Land 254 297 - 96 332 - 350 629

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS 39 775 923 (203) 998 431 (1 553) 40,772,598

Prior period error Note 2018/19 R’000 Nature of prior period error Relating to 20WW/XX [affecting the opening balance] (203) Bridge repair capitalised in 2018/19 (203) Relating to 2018/19 -

Total prior period errors (203)

The prior period error relates to maintenance and repair of bridge on road number P186/1 (N12) which was erroneously capitalised.

- 68 -

212 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 213 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

32.4 Capital Work-in-progress CAPITAL WORK-IN-PROGRESS AS AT 31 MARCH 2020 Opening Current Year Ready for use Closing balance WIP (Assets to the balance 1 April 2020 AR) / 31 March Contracts 2020 Note terminated Annexure 7 R’000 R’000 R’000 R’000

Buildings and other fixed structures 1,679,125 508,979 (497,174) 1,690,930 Intangible assets 11,513 5,291 (16,804) - TOTAL 1,690,638 514,270 (513,978) 1,690,930

Number of projects 2019/20

Planned, Planned, Construction Construction Total Age analysis on ongoing projects not started started R’000 0 to 1 Year 16 1 59,754 1 to 3 Years 36 10 501,405 3 to 5 Years 79 7 1,129,771 Longer than 5 Years - - - Total 131 18 1,690,930

Payables not recognised relating to Capital WIP Note 2019/20 2018/19 R’000 R’000 Amounts relating to progress certificates received but not paid at year

end and therefore not included in capital work-in-progress 9 642 14 022

Total 9 642 14 022

- 69 -

212 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 213 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

CAPITAL WORK-IN-PROGRESS AS AT 31 MARCH 2019 Ready for use (Assets Closing Opening to the AR) ) balance balance Prior period Current Year / Contracts 31 March Note 1 April 2019 error WIP terminated 2019 Annexure 7 R’000 R’000 R’000 R’000 R’000 Buildings and other

fixed structures 1,631,751 11,002 938 471 (902 099) 1,679,125 Intangible assets 17 973 (19,224) 12 764 - 11,513 TOTAL 1,649,724 (8,222) 951 235 (902 099) 1,690,638

Number of projects 2018/19

Age analysis on ongoing projects Planned, Planned, Construction not Construction Total started started R’000 0 to 1 Year 16 2 213 388 1 to 3 Years 36 15 784,937 3 to 5 Years 75 7 692,313 Longer than 5 Years - - - Total 127 24 1,690,638

- 70 -

214 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 215 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

32.5 Immovable assets written off IMMOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2020 Buildings and Heritage Land and Total other fixed assets subsoil structures assets R’000 R’000 R’000 R’000

Assets written off - - - - TOTAL

IMMOVABLE ASSETS WRITTEN OFF - - - -

IMMOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2019 Buildings and Heritage Land and Total other fixed assets subsoil structures assets R’000 R’000 R’000 R’000

Assets written off - - - - TOTAL IMMOVABLE

ASSETS WRITTEN OFF - - - -

- 71 -

214 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 215 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

32.6 S42 Immovable assets Assets to be transferred in terms of S42 of the PFMA – 2019/20 Number of Value of assets assets R’000

BUILDINGS AND OTHER FIXED STRUCTURES 4 128 997 Other fixed structures 4 128 997

TOTAL 4 128 997

The above building infrastructure assets is mainly relating to completed Driving Licence Testing Centres which are subjected to be transferred to the Department of Infrastructure Development during 2020/21 financial year as the custodian of all building infrastructure within the Gauteng Province.

Assets to be transferred in terms of S42 of the PFMA – 2018/19 Number of Value of assets assets R’000

BUILDINGS AND OTHER FIXED

STRUCTURES 4 150 340 Non-residential buildings 4 150 340 Other fixed structures - -

LAND AND SUBSOIL ASSETS - - Land - -

TOTAL 4 150 340

- 72 -

216 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 217 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

33 Principal-agent arrangements

33.1 Department acting as the principal 2019/20 2018/19 R’000 R’000 Ekurhuleni Metropolitan Municipality 345 685 346 074 Mogale City 29 011 29 454 Sedibeng Municipality 75 231 73 418 City of Johannesburg 307 142 297 064 Tshwane Metropolitan Municipality 191 867 193 862 South African Post Services 173 651 159 220 *Merafong District Municipality - 12 515 Randwest 21 694 24 453 Total 1 144 281 1 136 060

The above municipalities are collecting revenue on behalf of the Department in terms of the Road Traffic Act. For the service they render on behalf of the Department they are entitled to a range between 20% or 100% agency fee (commission) as per signed service level agreement.

If these municipalities fail to deposit net revenues collected to the Department for a period of two months, the Department will cut the supply of the face value forms for three (3) or more months. In addition, where continuous deficiencies are identified, the Department will assign management and supervisory staff to oversee the operations of this function within the defaulting municipality and should the misadministration or unacceptable performance perpetuate then the function to perform Registering and Testing Authority will be withdrawn.

In the event where the principal arrangement is terminated, the municipality is required to pay over any outstanding amounts owing, return all the computer equipment’s purchased for the purposes of administering this function and lastly the Department at its own expense will remove these equipment’s from the municipal premises.

#In or around February 2018 Westonaria and Randfontein Municipality respectively were merged into Randwest Municipality hence the variance between the current and prior year agency fees paid.

*Merafong is under administration thus surrender 100% of collected revenue to the Department.

The Department of Infrastructure Development (DID) is facilitating the projects of rehabilitation maintenance and construction of DLTCs on behalf of the Department. No agency fees were paid to DID in the current financial year.

The Gautrain Management Agency (GMA) was established to co-ordinate, manage and play an oversight role in terms of the implementation and operational side of Gautrain Rapid Rail Link Project. For additional information pertaining to transfers to GMA please refer to Note 8 and 27.

The City of Tshwane Metropolitan Municipality (CoT) is providing subsidised bus service for Mamelodi and Southern, Eastern, Northern and Pretoria CBD on behalf of the Department. No agency fees were paid to the City of Tshwane in the current financial year.

- 73 -

216 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 217 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

33.2 Department acting as the agent 33.2.1 Revenue received for agency activities 2019/20 2018/19 R’000 R’000 - Total - -

The Department is collecting Pay As You Earn (PAYE) on behalf of South African Revenue Services (SARS) as required by Income Tax Act, no agency fees have been received in this regard.

- 74 -

218 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 219 218 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

34 STATEMENT OF CONDITIONAL GRANTS RECEIVED

GRANT ALLOCATION SPENT 2018/19

Division of % of

Revenue Amount available Division Act/ received Amount funds of Amount NAME OF GRANT Provincial Roll DORA Other Total by spent by Under / spent by Revenue spent by Grants Overs Adjustments Adjustments Available department department (Overspending) department Act department R’000 R’000 R'000 R'000 R’000 R'000 R'000 R'000 % R’000 R’000 Public Transport Operation Grant 2 436 074 - - - 2 436 074 2 436 074 2 014 534 421 540 83% 2 294 011 2 078 324 Provincial Roads Maintenance Grant 767 506 - - - 767 506 767 506 767 354 152 100% 742 522 742 275 GAUTENG PROVINCIAL GOVERNMENT | EPWP Integrated Grant for Prov 6 386 - - - 6 386 6 386 6 386 - 100% 6 490 6 490 3 209 966 - - - 3 209 966 3 209 966 2 788 277 421 692 3 043 023 2 827 089

DEPARTMENT OFROADSANDTRANSPORT

219

- 75 - 220 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

35 STATEMENT OF CONDITIONAL GRANTS AND OTHER TRANSFERS PAID TO MUNICIPALITIES

2019/20 2018/19 GRANT ALLOCATION TRANSFER Re-allocations by National Division DEPARTMENT OFROADSANDTRANSPORT DoRA and Treasury or of other Roll Total Actual Funds National Revenue transfers Overs Adjustments Available Transfer Withheld Department Act Actual transfer NAME OF MUNICIPALITY R’000 R’000 R'000 R'000 R'000 R'000 % City of Tshwane 2 300 - - 2 300 1 939 2 500 1 900 TOTAL 2 300 - - 2 300 1 939 - - 2 500 1 900

- 76 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 221 220 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS (UNAUDITED SUPPLEMENTARY SCHEDULE) for the year ended 31 March 2020 ANNEXURE 1A STATEMENT OF CONDITIONAL GRANTS AND OTHER TRANSFERS PAID TO MUNICIPALITIES GRANT ALLOCATION TRANSFER SPENT 2018/19

Reallocations by National % of Division DoRA and Treasury or Amount Amount available funds of other Roll Total Actual Funds National received by spent by Unspent spent by Revenue Actual NAME OF transfers Overs Adjustments Available Transfer Withheld Department municipality municipality funds municipality Act transfer MUNICIPALITY R’000 R’000 R'000 R'000 R'000 R'000 % R'000 R'000 R'000 % R’000 R’000

City of Tshwane 2 300 - - 2 300 1 939 2 500 1 900

GAUTENG PROVINCIAL GOVERNMENT | TOTAL 2 300 - - 2 300 1 939 ------2 500 1 900

DEPARTMENT OFROADSANDTRANSPORT

221

- 77 - 222 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS (UNAUDITED SUPPLEMENTARY SCHEDULE) for the year ended 31 March 2020 ANNEXURE 1B STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS TRANSFER ALLOCATION TRANSFER 2018/19

% of Adjusted Roll Total Actual Available funds Final

DEPARTMENT OFROADSANDTRANSPORT Appropriation Overs Adjustments Available Transfer Transferred Appropriation DEPARTMENTAL AGENCY/ ACCOUNT R'000 R'000 R'000 R'000 R'000 % R'000 Prov DA:Gauntrain Man Agency 2 153 314 2 153 314 2 153 314 100% 1 945 268

TOTAL 2 153 314 - - 2 153 314 2 153 314 1 945 268

- 78 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 223 222 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS (UNAUDITED SUPPLEMENTARY SCHEDULE) for the year ended 31 March 2020

ANNEXURE 1C STATEMENT OF TRANSFERS/SUBSIDIES TO PUBLIC CORPORATIONS AND PRIVATE ENTERPRISES TRANSFER ALLOCATION EXPENDITURE 2018/19 % of Adjusted Available NAME OF PUBLIC Appropriation Roll Total Actual funds Final CORPORATION/PRIVATE Act Overs Adjustments Available Transfer Transferred Capital Current Appropriation ENTERPRISE R'000 R'000 R'000 R'000 R'000 % R'000 R'000 R'000 Public Corporations Subsidies 2 615 700 - - 2 615 700 2 167 572 82,9% 2 167 572 2 463 790 Public Transport Operation Grant 2 436 074 - - 2 436 074 2 014 534 82,7% 2 014 534 2 294 011 GAUTENG PROVINCIAL GOVERNMENT | Northwest Star Demarcation 179 626 - - 179 626 153 038 85,2% 153 038 169 779 TOTAL 2 615 700 - - 2 615 700 2 167 572 82,9% - 2 167 572 2 463 790

ANNEXURE 1D STATEMENT OF TRANSFERS TO HOUSEHOLDS TRANSFER ALLOCATION EXPENDITURE 2018/19 % of Adjusted Available Appropriation Roll Total Actual funds Final DEPARTMENT OFROADSANDTRANSPORT Act Overs Adjustments Available Transfer Transferred Appropriation HOUSEHOLDS R'000 R'000 R'000 R'000 R'000 % R'000 Transfers H/H:Empl S/Ben:Injury on duty 2 953 - - 2 953 193 7% 870 H/H:Empl S/Ben:Leave gratuity 3 804 - - 3 804 4 777 126% 3 460 H/H:Claims Against State (Cash) 1 237 - - 1 237 679 55% 3 200 H/H Empl s/Ben:PST Retirtmt Benefit 1 754 - - 1 754 1 778 101% 60 TOTAL 9 748 - - 9 748 7 427 7 590 223

- 79 - 224 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS (UNAUDITED SUPPLEMENTARY SCHEDULE) for the year ended 31 March 2020

ANNEXURE 1E STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED 2019/20 2018/19

NAME OF ORGANISATION NATURE OF GIFT, DONATION OR SPONSORSHIP R’000 R’000 Received in kind DEPARTMENT OFROADSANDTRANSPORT Old Mutual Limited Old Mutual Hamper (diary, pen, mug, small fan, cooler bag and lunch) - 1 Gauteng Provincial Legislature Picnic pack - 2 Clinex Hand Sanitisers (116 x 500ml,35 x 20 litres, 135 x 5 litres and 54 x 25 litres) and 3 000 gloves. 300 - Subtotal 300 3

TOTAL 300 3

- 80 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 225 224 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS (UNAUDITED SUPPLEMENTARY SCHEDULE) for the year ended 31 March 2020 ANNEXURE 1F STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE

2019/20 2018/19 NATURE OF GIFT, DONATION OR SPONSORSHIP (Group major categories but list material items including name of organisation R’000 R’000 Made in kind Sponsorship for the UATP/I Transport conference and exhibition made to Intelligent Transport Society South Africa - 750 Donation of Computer equipments (58) and office furniture (8) to Growing Champion, Masomelezane Foundation, - Nkateko ya Ntsako Home Base Care, St Thomas Anglican Church and Regatammogo Sports Development - 532 St Joseph Church (fans, Acqua cooler and office containers (3x12m and 3x6m) 22 - TOTAL 22 1 282

GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 225

- 81 - 226 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS (UNAUDITED SUPPLEMENTARY SCHEDULE) for the year ended 31 March 2020 ANNEXURE 2A STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2020 Opening Liabilities Liabilities Liabilities Closing Balance incurred during paid/cancelled/ recoverable Balance the year reduced during (Provide the year details 1 April 2019 hereunder) 31 March 2020 Nature of Liability R’000 R’000 R’000 R’000 R’000 DEPARTMENT OFROADSANDTRANSPORT Claims against the department 656 180 106 186 (466 299) - 296 067

TOTAL 656 180 106 186 (466 299) - 296 067

The amount totalling R466.2 million disclosed in this annexure as liabilities cancelled, reduced or paid is not a reflection of the actual amount paid by the Department in terms of any court settlement. This balance reflects the impact of the full claim that was initially lodged against the Department in relation to any claim which has either been settled or dismissed by the relevant courts or prescribed in terms of law.

- 82 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 227 226 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS (UNAUDITED SUPPLEMENTARY SCHEDULE) for the year ended 31 March 2020

ANNEXURE 3 CLAIMS RECOVERABLE Cash in transit at year end Confirmed balance outstanding Unconfirmed balance outstanding Total 2019/20 * Receipt date Government Entity up to six (6) working days 31/03/2020 31/03/2019 31/03/2020 31/03/2019 31/03/2020 31/03/2019 after year end Amount R’000 R’000 R’000 R’000 R’000 R’000 R’000 Department ------

Other Government Entities GAUTENG PROVINCIAL GOVERNMENT | g-FleeT Management 448 - - - 448 - 448 - - - 448 -

TOTAL 448 - - - 448 - DEPARTMENT OFROADSANDTRANSPORT 227

- 83 - 228

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS (UNAUDITED SUPPLEMENTARY SCHEDULE) for the year ended 31 March 2020 ANNEXURE 4 INTER-GOVERNMENT PAYABLES Cash in transit at year end 2019/20 Confirmed balance outstanding Unconfirmed balance outstanding TOTAL * Payment date GOVERNMENT ENTITY up to six (6) working days DEPARTMENT OFROADSANDTRANSPORT 31/03/2020 31/03/2019 31/03/2020 31/03/2019 31/03/2020 31/03/2019 before year end Amount R’000 R’000 R’000 R’000 R’000 R’000 R’000 DEPARTMENTS Current National Department of Justice and Constitution Development - 914 4 419 606 4 419 1 520 - - Government Printing Works - 1 - - - 1 - - Department of Public Service and Administration 682 552 - - 682 552 - - TOTAL 682 1 467 4 419 606 5,101 2 073 - -

OTHER GOVERNMENT ENTITY Current g-FleeT Management 1 896 1 751 - - 1 896 1 751 - - Road Traffic Management Corporation (RTMC) 24 716 28 461 - - 24 716 28 461 - - Driving Licence Card Account 7 563 8 626 - - 7 563 8 626 - - Road Traffic Infringement Agency 2,153 1 240 - - 2,153 1 240 - -

TOTAL 36,328 40 078 - - 36,328 40 078 - -

- 84 - GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 229 228 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS (UNAUDITED SUPPLEMENTARY SCHEDULE) for the year ended 31 March 2020

ANNEXURE 5 INVENTORIES Insert major Clothing Material Materials and Other supplies category of Inventories for the year ended 31 March 2020 and Accessories Supplies (Face value) inventory TOTAL R’000 R’000 R’000 R’000 R’000 Opening balance 2,087 35,453 36 - 37,576 Add/(Less): Adjustments to prior year balances - - - - - Add: Additions/Purchases – Cash 2,015 6,356 18,815 - 27,186 (Less): Issues (3,907) (12,146) (5,644) - (21,697) Add/(Less): Adjustments - - - - - GAUTENG PROVINCIAL GOVERNMENT | Closing balance 195 29,663 13,207 - 43,065

Annual improvements on Modified Cash Standard (MCS) as amended requires the disclosure of inventory per major category. The cost of inventories is assigned by using the weighted average cost basis.

DEPARTMENT OFROADSANDTRANSPORT

- 85 -

229 230

GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

GAUTENG PROVINCIAL GOVERNMENT | ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS (UNAUDITED SUPPLEMENTARY SCHEDULE) for the year ended 31 March 2020

Insert major Clothing Material Materials and Other supplies category of Inventories for the year ended 31 March 2019 and Accessories Supplies (Face value) inventory TOTAL R’000 R’000 R’000 R’000 R’000

DEPARTMENT OFROADSANDTRANSPORT Opening balance 2,830 25,164 448 - 28,442 Add/(Less):Adjustments to prior year balances - - - - - Add:Additions/Purchases – Cash 2,388 37,498 5,910 - 45,795 (Less): Issues (3,130) (27,822) (6,322) - (37,274) Add/(Less): Received current, not paid (Paid current year, received prior year) - 613 - - 613 Add/(Less): Adjustments - - - - - Closing balance 2,087 35,453 36 - 37,576

- 86 -

GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 231 GAUTENG DEPARTMENT OF ROADS AND TRANSPORT VOTE 9

ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS (UNAUDITED SUPPLEMENTARY SCHEDULE) for the year ended 31 March 2020 ANNEXURE 6 MOVEMENT IN CAPITAL WORK IN PROGRESS MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2020 Ready for use (Asset register) / Opening Current Year Contract Closing balance Capital WIP terminated balance R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES 1,679,125 508,979 (497,174) 1,690,930 Other fixed structures 1,679,125 508,979 (497,174) 1,690,930

SOFTWARE 11,513 5,291 (16,804) - Software 11,513 5,291 (16,804) -

TOTAL 1,690,638 514,270 (513,978) 1,690,930

MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2019 Ready for use (Asset register) / Opening Prior period Current Year Contract Closing balance error Capital WIP terminated balance R’000 R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES 1 631 751 11,002 938 471 (902 099) 1,679,125 Other fixed structures 1 631 751 11,002 938 471 (902 099) 1,679,125

SOFTWARE 17 973 (19,224) 12 764 - 11,513 Software 17 973 (19,224) 12 764 - 11,513

TOTAL 1,649,724 (8,222) 951 235 (902 099) 1,690,638

- 87 -

230 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 231 GaUTEnG pRovincE Roads and TRanspoRT REPUBLIC OF SOUTH AFRICA

g-FleeT MANAGEMENT ANNUAL REPORT 2019 - 2020 FINANCIAL YEAR

Compiled by Department: Monitoring and Evaluation

232 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 233 TABLE OF CONTENTS

1. DEPARTMENT GENERAL INFORMATION 235 2. ABBREVIATIONS AND ACRONYMS 236

PART A | GENERAL INFORMATION

3. OVERVIEW OF THE CHIEF EXECUTIVE OFFICER 237 4. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT 252 5. STRATEGIC OVERVIEW 253 6. LEGISLATIVE AND OTHER MANDATES 255 7. ORGANISATIONAL STRUCTURE 256

PART B | PERFORMANCE INFORMATION

1. AUDITOR GENERAL REPORT : PREDETERMINED OBJECTIVES 258 2. OVERVIEW OF THE ENTITY’S PERFORMANCE 259 3. STRATEGIC OUTCOME ORIENTED GOALS 261 4. PERFORMANCE INFORMATION BY PROGRAMME 262 PROGRAMME 1: OPERATIONAL MANAGEMENT SERVICE 262 PROGRAMME 2: CORPORATE AND FINANCIAL MANAGEMENT SERVICE 264 5. CAPITAL INVESTMENT 270

PART C | GOVERNANCE

1. INTRODUCTION 272 2. RISK MANAGEMENT FRAUD AND CORRUPTION 272 3. MINIMISING CONFLICTS OF INTEREST 272 4. CODE OF CONDUCT 272 5. HEALTH, SAFETY AND ENVIRONMENTAL ISSUES 272 6. PORTFOLIO COMMITTEES 273 7. STANDING COMMITTEE ON PARLIAMENTARY ACCOUNTS (SCOPA) RESOLUTION 281 8. PRIOR MODIFICATIONS TO AUDIT REPORT 286 9. INTERNAL CONTROL UNITS 287 10. AUDIT COMMITTEE REPORT 288

PART D | HUMAN RESOURCE MANAGEMENT

1. INTRODUCTION 293 2. HUMAN RESOURCES OVERSIGHT STATISTICS 294

PART E | FINANCIAL INFORMATION

1. REPORT OF THE AUDITOR GENERAL 324 2. ANNUAL FINANCIAL STATEMENTS 328

232 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 233 PART A GENERAL INFORMATION

234 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 235 1. TRADING ENTITY GENERAL INFORMATION

NAME OF TRADING ENTITY: g-FleeT Management

PHYSICAL ADDRESS: 76 Boeing Road East

Bedfordview

2008

POSTAL ADDRESS: Private Bag X1

Bedfordview

2008

TELEPHONE NUMBER: +27 11 372-8600

FAX NUMBER: +27 086 669 6926

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS: www.gfleet.gov.za

234 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 235 2. ABBREVIATIONS AND ACRONYMS

AGSA Auditor General of South Africa MEC Member of Executive Council BBBEE Broad-Based Black Economic Empowerment CEO Chief Executive Officer CFO Chief Financial Officer COO Chief Operations Officer PFMA Public Finance Management Act TR Treasury Regulations MTEF Medium Term Expenditure Framework SMME Small Medium and Micro Enterprises MS NOXOLO MANINJWA | CHIEF EXECUTIVE OFFICER SCM Supply Chain Management BAS Basic Accounting System FIS Fleet Information System ESS Employee Self Service CRM Client Relations Management HoD Head of Department SLA Service Level Agreement WSP Workplace Skills Plan OD Organisational Development TMR Transformation, Modernisation and Re-industrialisation BAC Bid Adjudication Committee FML Full Maintenance Lease CSD Central Supplier Database DPSA Department of Public Service and Administration

236 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 237 3. OVERVIEW OF THE CHIEF EXECUTIVE OFFICER

MS NOXOLO MANINJWA | CHIEF EXECUTIVE OFFICER

OVERVIEW OF THE FINANCIAL YEAR: functional needs of the client. g-FleeT Management is the Trading Entity of the Gauteng Department • Short-term motor rentals - is a short-term vehicle lease service of Roads and Transport (GDRT). The main aim of the Entity is to provide offered by g-FleeT which is comprised of a fixed rental cost over a motor transportation services to all government departments at provincial, selected short period (less than 12 months). municipal, and national levels. • Chauffeur driven, which provides both driver and vehicle for hire over a short-term period. g-FleeT operates from Bedfordview, where the Head Office is based, • Fuel card services - for payment of the fuel and toll gate fees with offices at 45 Commissioner Street, Johannesburg Central Business • Managed maintenance – a call centre to ensure authorization is District, offices in Koedoespoort, Pretoria, and a kiosk at the OR Tambo only given for necessary maintenance that complies with manufactures International Airport, Kempton Park. The Entity has three (03) functional standards and is in line with manufactures guidelines. regional offices namely in Kwa-Zulu Natal, Eastern Cape, Western Cape. • elematics, for tracking and monitoring of vehicles and drivers These mainly service regional and district offices of Gauteng-based • Accident management and roadside assistance, which assists our National Departments and Municipalities who are key clients of g-FleeT. clients with towing and repairs of vehicles. • License and traffic fine administration which is responsible for: The Entity is mandated to provide effective, competitive, efficient, and - Motor vehicle registration and licensing reliable fleet services to government departments. These services are - Ensuring that every fine is re-routed to the correct offender. offered at a fee to all spheres of government. The Entity is required by law to be financially self-sustainable. The Entity provided the following The Entity owned and manages a fleet of six thousand three hundred services to its clients during the year under review: and nineteen (6,319) vehicles as at 31 March 2020.

• Full Maintenance Lease (FML) – The FML is a long-term vehicle The 2019/20 financial year has been another positive year for g-FleeT lease service offered by g-FleeT which is comprised of a fixed rental Management Trading Entity. The Entity continued to implement various cost over a selected period of a minimum of twelve (12) months strategies and policies to ensure that it is financially viable and sustainable. up to seven (7) years, depending on the type of vehicle and the The Entity achieved its fourth consecutive unqualified audit opinion from

236 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 237 the Auditor General of South Africa (AGSA). This was achieved due to AVERAGE TURNAROUND TIMES FOR MECHANICAL REPAIRS concerted efforts by both staff and management in ensuring that the Entity improves on governance, financial management matters as well • This indicator seeks to improve turnaround times on mechanical as guidance and oversight performed by the various committees that the repairs managing downtime on vehicles under repair. This will in Entity accounts too. turn improve efficiency and improve customer service. The Entity planned a turnaround time of 15 days during the period under re- With regards to the overall performance of the Entity against targets view and achieved an average of 11 days against a target of 15 set out in the approved 2019/20 Annual Performance Plan, the Entity days. This was due to close monitoring of the mechanical process achieved eleven (11) targets which translate to 73.3% performance rate. and using internship candidates to fill in the gaps.

The Entity aims to be sustainable and ensure profitable growth in IMPLEMENTATION OF ICT STRATEGY/PLAN revenue by implementing initiatives aimed at attracting and retaining customers. The overall revenue growth across all sources increased by • This indicator seeks to improve internal business processes to an average of 6.37% in 2019/20 to the value amounting to R1.100 billion. progress efficiency and reduce turnaround times while enhancing transparency. The Entity developed and approved the 2014-2019 TOP MANAGEMENT’S PERSPECTIVE OF THE ENTITY ICT Strategy together with the implementation plan for the 5 years. The 2019/20 ICT implementation plan included the rollout of the The Entity has made great strides in improving internal controls and Customer Relationship Management system (CRM and the pro- governance. The Entity has continued to render customer-centric fleet curement of the Key Management System. The ICT plan was im- management services and also ensured that it remains financially sus- plemented; however, the complete CRM module will be part of the tainable. Notwithstanding the challenges, the leadership and officials overall new FIS project for all business unit’s operations. The Key are committed to the vision of the Entity to “Keep Government Service Management System was procured and installed. The VIP and Pool Delivery on the Move”. cabinet was installed and training provided. The cabinets for the maintenance unit will be procured in 20/21 financial year. ACHIEVEMENTS IMPLEMENTATION OF THE SUSTAINABILITY MODEL INDICATORS TO IMPROVE EFFICIENCY AND CUSTOMER SERVICE • This indicator seeks to ensure the sustainability to the Entity. The The Entity identified the following four indicators that seek to ensure completion of phase 2 of the implementation of the sustainability that the Entity is sustainable. These indicators further assist the Enti- model (Driver 5) was achieved as planned. The Project Initiation ty in measuring the quality of services provided, turnaround times, and Plans for Phase 2 Infrastructure projects and the Panel beating quality of vehicles provided by the Entity. workshop, Wellness Centre, and Car wash were approved. Measuring efficiency enables g-FleeT Management to make the best possible use of the Entity’s resources. INDICATORS TO MAXIMISE RETURN ON INVESTMENT

AVERAGE AGE OF FLEET Return on Investment indicators are very important to g-FleeT Management as the Entity does not receive equitable share or any grant allocations. • This indicator seeks to ensure that vehicles provided by g-FleeT Vehicle utilization by client departments is therefore directly related Management are efficient and reliable. The Entity continued to procure to revenue generation. Ensuring maximized utilization of vehicles will vehicles at discounted prices through the National Treasury RT57 increase return on investment which will contribute to strengthening the Contract. Average age of fleet, ≤4 years. Despite delays in the fi- stability, growth, and sustainability of the Entity. nalization of the RT57 contract, the Entity kept the average age of fleet at less than 4 years during the financial year under review. AVERAGE NUMBER OF BUSINESS DAYS FROM DELIVERY OF This was due to the fine balance between the intake of new vehi- VEHICLES TO G-FLEET TO ACTIVE VEHICLE CONTRACT WITH cles and the withdrawal of redundant vehicles. This is a positive CLIENT (LEASE VEHICLES ONLY FROM PERMANENT UNIT) achievement, which ensures that the Entity delivers on its mission of “Providing reliable fleet to meet client needs”. This indicator optimizes billing on purchased vehicles by ensuring that

238 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 239 vehicles are allocated to clients within a reasonable timeframe. The 2018/19 AUDIT OPINION Entity achieved an average of 19 days against a target of 20 days in activating the vehicle contract from the delivery. This in return ensures An audit report from the Auditor-General of South Africa is a key that vehicles are not lying idle within the yard while not incurring indicator that enables the Entity to measure the effectiveness of its any revenue. governance systems and the progress made regarding the objective of turning the Entity around and improving its performance. In this regard, AVERAGE PERCENTAGE OF RENTAL DAYS UTILIZED FOR VIP the Entity achieved an unqualified audit opinion for the 2018/19 SELF-DRIVE VEHICLES financial year. This is the fourth year in a row that the Entity is achieving an unqualified audit opinion. This indicator seeks to ensure that the Entity’s assets are optimally utilized to generate revenue. The Entity achieved 53.94% against the planned target of 50%. This contributes to the impact of a sustainable, safe, efficient, reliable, and affordable fleet management solution.

AVERAGE PERCENTAGE OF RENTAL DAYS UTILIZED FOR “The entity surpassed the annual POOL VEHICLES target of 80% for vehicles sold “ through public auction. This indicator too seeks to ensure that the Entity’s assets are utilized optimally to generate revenue. 81,84% has been achieved by the Entity against the planned target of 69%. This in return maximises entity returns and ensures financial sustainability. AUCTION

ANNUAL TARIFF STRUCTURE SUBMITTED TO PROVINCIAL As part of the strategy to effectively manage assets of the Entity TREASURY FOR APPROVAL and guided by the Asset Management Policy, obsolete vehicles were disposed of through a public auction. The Entity surpassed the annual This indicator is to ensure the Entity is sustainable through correct target of 80% for vehicles sold through an auction. A total of 1791 pricing. The Entity submitted the annual tariff structure for the 2020/21 vehicles (including Judge’s vehicles) were sold and an increased financial year to Provincial Treasury for approval as planned during the revenue of R 38 918 000 was generated during the year under review. period under review. This is an increase of 34.58% in revenue as compared to the performance of the previous financial year. The success of the auction REDUCTION OF DEBTORS DAYS process can be attributed to an increased turnout from buyers and the quality and reasonable prices of vehicles on auction. The efforts put by the Entity, particularly finance officials and senior management in making sure that debtors management policy is fully The table on the following page outlines the number of vehicles dis- implemented and adhered to, resulted in the reduction of average posed of and revenue generated during the financial year under review. debtors’ days by 70.36% excluding departments that submitted the payment plan. This outstanding performance surpassed the set annual target of 20%.

238 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 239 Revenue collection – Disposal of Vehicles through Public Auctions

No. Auction Date Fleet Sold (#) Total Proceeds (R)

1 26th and 27th June 2019 484 R 37 719 464.71

2 25th and 26th September 2019 435 R 36 015 225.38

3 04th and 05th December 2019 – Live Auction 503 R 45 845 200.07

4 10th December 2019 – Online Auction 359 R 27 871 688.15

02nd May 2019, 15th May 2019, 21st June 2019, 19th July 2019, 10 5 27th July 2019, 08th August 2019, R 3 970 796.73 (Judges Vehicles) 10th October 2019,12th November 2019, 12th February 2020, 13th February 2020

Total 1 791 R 151 422 375.00

Table 1. Revenue Collection – Disposal of Vehicles

REVENUE COLLECTION – LEASES

The implementation of the Debtors Management Policy continues to yield the desired results for the Entity in terms of revenue collection from client departments in relation to the lease of vehicles. The Entity surpassed the 20% target in decreasing the average debtor days. This percentage excludes the amounts owed by client departments that submitted written payment plans.

During the financial year under review, an aggregate amount of R884 million was actively collected from client departments. The increase constitutes 2.27% in comparison to the amount of R865 million collected in the 2018/19 financial year. The Entity will continue to follow up on all outstanding accounts in line with the approved Debtors Management Policy.

The below table and graphic presentation provide a synopsis of the revenue collection growth in the past five (5) years:

2015/16 2016/17 2017/18 2018/19 2019/20

Source of Revenue R’000

Revenue Collected from Leases 819,042 730,993 784,370 865,056 884,718 of vehicles

% Growth per year 29% -11% 7% 10% 2,27%

Table 1.1. Revenue Collection Growth over the past 5 years

240 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 241 Contribution towards Transformation, Modernization, and Re-industrialization (TMR)

The Broad-Based Black Economic Empowerment Act 53 of 2003 as amended by Act 46 of 2013, promotes the achievement of the constitutional right to equality, increase broad-based and effective anticipation of black people in the economy and promote a higher growth rate, increased employment, and more equitable income distribution; and establish a national policy on broad-based black economic empowerment so as to promote the economic unity of the nation, protect the common market, and promote equal opportunity and equal access to government services.

The Gauteng Provincial Government has committed itself to a viable economic empowerment of all black people (historically disadvantaged individuals), in particular, Women, Youth, and People with Disabilities through diverse but integrated socio-economic strategies. It has set its Equity Targets relating to B-BBEE for all provincial departments and entities in the province to be met on monthly basis.

The table below outlines the provincial target currently:

Total awarded to WOMEN OWNED Total awarded to YOUTH OWNED Total awarded to PWD OWNED Total awarded to HDI companies companies companies companies

80 30 10 2

Table 1.2. Provincial Equity Targets

Furthermore, the Gauteng Provincial Government has committed to achieving 30% of provincial spend on goods and services to support the Township Economy Revitalization (TER) programme, however reporting on this is currently done by Provincial Treasury, Provincial Supply Chain Management. The Entity has committed itself to strive to meet the provincial targets as set by the Office of the Premier.

In addition, the Entity has developed a Sourcing Strategy for the 2019/20 financial year to show its commitment to meeting the targets and also to enable the Entity to monitor the targets on regular basis.

240 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 241 The tables below show the improvement the Entity has achieved in the 2019/20 financial year compared to the 2018/19 year:

CONTRACTS AWARDED TO ENTERPRISES OWNED BY: HISTORICALLY DISADVANTAGED INDIVIDUALS

2018/19 2019/20

TOTAL NUMBER TOTAL PERCENTAGE TOTAL PERCENT- TOTAL VALUE (R) TOTAL NUMBER (#) TOTAL VALUE (R) (#) (%) AGE (%)

154 63 215,284,488.62 143 83 81,267,899

Table 1.3.: Analysis of Awards to HDI’s

CONTRACTS AWARDED TO ENTERPRISES OWNED BY: WOMEN

2018/19 2019/20

TOTAL NUMBER TOTAL PERCENTAGE TOTAL PERCENT- TOTAL VALUE (R) TOTAL NUMBER (#) TOTAL VALUE (R) (#) (%) AGE (%)

153 32 117,471,371.36 105 48 32,547,877

Table 1.4.: Analysis of Awards to Women

CONTRACTS AWARDED TO ENTERPRISES OWNED BY: YOUTH

2018/19 2019/20

TOTAL NUMBER TOTAL PERCENTAGE TOTAL PERCENT- TOTAL VALUE (R) TOTAL NUMBER (#) TOTAL VALUE (R) (#) (%) AGE (%)

13 9 23,443,610.51 43 22 2,885,320

Table 1.5.: Analysis of Awards to Youth

CONTRACTS AWARDED TO ENTERPRISES OWNED BY: PEOPLE WITH DISABILITIES

2018/19 2019/20

TOTAL NUMBER TOTAL PERCENTAGE TOTAL PERCENT- TOTAL VALUE (R) TOTAL NUMBER (#) TOTAL VALUE (R) (#) (%) AGE (%)

1 0 13,758.48 4 2 211,592

Table 1.6: Analysis of Awards to PWD’s

242 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 243 The table below outlines the provincial target currently on Township Economy Revitalization (TER) spent for 2019/20 financial year:

Total Spent on Goods, Services and Proportion Spent on Township Based Month % TER Spent Construction Suppliers

R R

April 2019 1,315,444.85 196,294.00 15

May 2019 1,560,763.24 403,130.60 26

June 2019 1,581,758.84 704,724.60 45

July 2019 1,658,063.50 468,665.01 28

August 2019 1,274,905.49 405,479.98 32

September 2019 824,282.06 251,249.91 30

October 2019 977,398.28 355,975.91 36

November 2019 1,065,071.23 390,365.17 37

December 2019 935,657.38 104,640.76 11

January 2020 1,883,736.46 747,294.76 40

February 2020 943,565.33 571,467.67 61

March 2020 1,808,930.94 413,514.38 23

TOTAL 15,829,577.60 5,012,802.75 32

242 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 243 CHALLENGES FACED BY THE ENTITY er) to be awarded (appointed) by the 1st April 2019 but the tender was cancelled. The new tender was awarded in July 2019, and the service The financial year under review has not been without its level agreement was only finalized in December 2019. Therefore, the challenges. The following outlines some of the challenges rollout and implementation of the new tracking system only started in experienced by the Entity. February 2020 against the forecast of July 2019.

AVERAGE TURNAROUND TIME FOR ACCIDENT REPAIRS REVITALISING TOWNSHIP ECONOMY

This indicator seeks to improve turnaround times accident repairs The indicator is required to speed up growth and transforming the managing downtime on vehicles under repair. This will in turn improve economy in the townships to create decent work and sustainable efficiency and improve customer service. The Entity planned a turnaround livelihoods in townships. time of 30 days during the period under review, and could only manage an average of 44.25 days. This was due to vehicles awaiting parts on PERCENTAGE OF MAINTENANCE EXPENDITURE ON GAUTENG backorder, and the high number of updates (unforeseen damage) on TOWNSHIP BUSINESSES (AUTOMOTIVE) repairs contribute to lengthy turnaround time as well as challenges experienced under the RT 46 contract. The Entity is continuously • This indicator seeks to contribute to modernization of townships engaging the service provider to minimize turnaround time. and to support township businesses. The Entity only achieved an average of 3,8% against the planned target of 5% during the period TRAFFIC FINES under review. This was because the Entity does not have a direct influence on the allocation of business by the RT 46 service provider. In relation to the management of traffic fines, the Entity continues to experience challenges in the Western Cape Province. Due to unpaid fines, caused by the challenge of re-routing of fines to client departments, the

Entity gets blocked on e-Natis and is unable to renew vehicle licenses. In “The indicator seeks to contribute the financial year under review, the Entity attended court proceedings in different municipalities to negotiate, cancel, or re-route the traffic fines. to modernization of townships and “ Alternative options are being explored to address the re-routing of fines. to support township businesses.

The Administrative Adjudication of Road Traffic Offences bill (AARTO) has been approved and the Road Traffic Infringement Agency (RTIA) is awaiting the proclamation date by the President to implement the ARRTO 30 DAY PAYMENTS Act. RTIA will assist in multiple online re-routing of traffic fines where the information is provided by the Transport Officer (proxy). To ensure compliance with regulations, the Entity continued with its endeavours to pay suppliers within the legislated timeframes. For VEHICLE TRACKING the year under review, the Entity recorded a 96% performance on the percentage of payments of undisputed invoices made within 30 days Safeguarding the Entity’s assets is critical in order to ensure that it is from receipt of invoice. falling short of reaching the annual target sustainable in the medium to long-term. The Entity’s vehicles are of 100% by 4%. Delays in the late issuing and activation of vendor supplied to clients with the tracking and monitoring services, excluding numbers for 3rd party claims and late certification of payments prevented the exempted vehicles as per request from client departments. In the the Entity from reaching the set target. Although there has been an financial year under review, the Entity did not achieve the annual target improvement in terms of paying undisputed invoices within 30 days of tracking 93% of in-service vehicles. The Entity only achieved 87%, this from receipt of invoice (2018/19 – 94%:2019/20 – 96%), the Entity will was due to the delay in awarding of the Comprehensive Vehicle Tracking continue to engage the relevant parties in a bid to comply with Treasury System tender and the finalization of the service level agreement with regulation 8.2.3. the appointed service provider. Furthermore, the Entity is embarking on a process to have all its suppliers The old contract on the comprehensive tracking solution expired on 31st to register on the electronic invoicing system and rolling out automation March 2019. The Entity anticipated that the new tender (service provid- payments for contracted suppliers.

244 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 245 FIINANCIAL YEARS

TOTAL PERCENTAGE (%) 2016/17 2017/18 2018/19 TOTAL VALUE (R) Payments Payments Payments Payments Payments Payments Payments Payments made Made within made out- Made within Made within made outside Made within made outside outside 30 30 days side 30 days 30 days 30 days 30 days 30 days 30 days days

83% 17% 88% 12% 94% 6% 96% 4%

The following table depicts the analysis and performance of the Entity in terms of achieving absolute compliance in paying service providers within 30 days in the past four (4) years.

The Entity will continue to implement internal controls and innovative mechanisms to enhance the procure to pay cycle.

244 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 245 ORGANISATIONAL AND EMPLOYEE ENVIRONMENT

Due to a moratorium placed by the Gauteng Department of Roads and Transport in 2019, the Entity could not proceed with the recruitment process for the posts that were already advertised.

The vacancy rate in the 2019/2020 financial year is at 28% broken down as follows:

FILLED APPROVED ESTABLISH- LEVEL (INCLUDING CONTRACT VACANT VACANCY RATE MENT WORKERS)

SMS (Level 13 to 16) 8 3 5 63%

Level 9 to 12 45 30 15 33%

Level 6 to 8 90 63 27 30%

Level 3 to 5 124 99 25 20%

Level 1 to 2 8 3 5 63%

TOTAL 275 198 77 28%

The Organisational structure reveals the following capacitation include the Workshop, Facilities, Permanent Fleet, and VIP and Pool and service delivery risks: business units.

• Insufficient capacity of mechanical engineers, ICT technical staff, The Key Management System was procured and installed for the VIP and artisans. unit as planned for the 2019/20 financial year. The KMS for the Asset • Not aligned to the customer-centric model for efficient service Management, Fleet Maintenance, and TSS will be procured during the delivery. 2020/21 financial year. • Dependency on GDRT. • Outdated technology not supporting proposed service delivery models. The Entity continued to work with the Gauteng Department of Infrastructure Development on the Phase 2 Infrastructure Projects and the rehabilitation A service provider has been appointed by the Department of Roads and of the Panel Beating workshop, Wellness Centre, and the Car Wash Transport to review and re-align the organizational structure for the during the period under review. The tender to renovate the three buildings Department of Roads and Transport and g-FleeT Management. Upon has been issued, evaluated and awaiting presentation to the BAC. The finalizing the proposed structure the Department will submit the Project Initiation Plans for the Phase 2 infrastructure projects have been proposed structure to the DPSA through the Office of the Premier for approved. concurrence.

THE SUSTAINABILITY MODEL RESPONSE TO COVID-19

During the period under review, the Entity continued to implement the The President of the country, Honorable Cyril Ramaphosa on 23 March identified projects of the approved Sustainability Model. 2020 announced a countrywide lockdown in response to the COVID-19 pandemic, part of the lockdown is that only certain categories of The CRM system was developed and installed – the business process businesses can remain open. was shared with e-GOV, the system was developed and a demonstration was conducted. However, additional requirements for other business During the final days of the year-end, departments providing essential units in collaboration with the Call Centre have been identified. These services were prioritized and were given preference to petrol card

246 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 247 distribution as well as lease of vehicles. The following services were Systems are the core of the Entity’s operational strategy. It is only through provided: Petrol Card Collection, Limited Chauffeur Driven Services, and the aggressive adoption of new technologies that the Entity will move VIP/Pool Call Centre from one spectrum to the other. Systems include automation, digitization, and internal controls. In addition to efficient operations, value-added In addition, the following services were provided by our service providers services such as the provision of relief vehicles and data for management during the lockdown, towing, tyre fitment, glass fitment, and call cen- information are crucial to improving customer experiences. tre will continue to operate with limited services. Our vehicle tracking partner was providing emergency services 24 hours a day throughout the The high number of traffic fines and accidents thereof (that are very costly period. All managers and key staff members were always on standby and to g-FleeT Management) requires a focused approach to driver behaviour. working remotely. As such, in the next five years, there is going to be a huge focus on this. In order to improve working conditions, it necessary to provide adequate g-Fleet Management placed hand sanitizers at key points in all our sites infrastructure for a conducive working environment and ensure contribution to encourage customers, suppliers, visitors, and employees to constantly to the creation of a friendly environment that is not harmful to the clean their hands. Further to this, surgical face masks were provided to citizens of South Africa. The project of rehabilitating the Wellness staff members dealing with the public. Communication through posters Centre, Panel beating workshop, and the Car Wash will commence on Notice Boards and e-mails is continuing. The visitor’s register was during the 2020/21 financial year. Phase 2 Infrastructure projects will also implemented. All COVID-19 related guidelines were developed also be implemented during the 2020/21 financial year. with GDRT. The long-term strategy requires that g-FleeT Management cement and FUTURE PLANS strengthen regional footprint. An efficient model of managing regions will be developed and implemented (i.e. that aligns cost, revenue, To support the objectives of the 6th administration in Transport and to simplicity, accessibility, and efficiencies). grow the Gauteng Economy, the Entity identified key strategic priorities as outlined in the 2020-2025 strategic plan. These key strategic priorities are anchored around three focus areas namely, Infrastructure, Operations, and Institutions. The focus areas are underpinned by Technology and ensure compliance with the National Green Transport Strategy. g-FleeT Operations Management five-year strategy is therefore focusing on these areas. COVID-19 and junk status record provides an opportunity for the Entity to radically transform its business operations and environment. In addition, g-FleeT Management will strive to clearly distinguish itself from its peers by offering value-added services to its customers. As such key areas, have been identified namely:

• Customer care management which is the centre of its operations, • Automation & digitization, • Training & development, • Conducive working environment, • Improving the state of the regional offices, • Driver behaviour management,

There is a need to develop a high-performance culture to maintain excellence in operations. Human Capital Development includes aligning organizational structure strategy, training, and development of employees to ensure levels of high performance. The Entity through the Department of Roads and Transport has started the process of reviewing the organizational structure. The project is envisaged to be completed before the end of the 2020/21 financial year.

246 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 247 OVERVIEW OF THE FINANCIAL RESULTS OF THE TRADING ENTITY

STATEMENT OF FINANCIAL PERFORMANCE

RECEIPTS The results of the actual collections for 2019/20 and the comparative year are depicted in Table 2.3.4.1 below:

Table 3.1: Revenue collected

2019/20 2018/19

ACTUAL (OVER)/ ACTUAL (OVER)/ ENTRY RECEIPTS BUDGET AMOUNT UNDER COL- ESTIMATE AMOUNT UNDER COL- COLLECTED LECTION COLLECTED LECTION R’000 R’000 R’000 R’000 R’000 R’000 Revenue from Exchange Transactions – Leasing of 850 000 884 718 (34 718) 836 000 865 056 (29 056) vehicles Revenue from Non-Exchange Transactions – Interest from 72 000 62 679 9 321 42 000 56 085 (14 085) bank, accident claims, and tender income.

Transport Fees 1 700 2 012 (312) 1 500 1 8 99 (399)

Auction Fees 70 000 151 438 (81 438) 63 945 112 539 (48 594)

TOTAL 993 700 1 100 847 (107 147) 943 445 1 035 579 (92 134)

As per the statement of financial performance, total revenue from services rendered by the Entity increased to R 1,075 billion (2018/19: R 1.015 billion). Revenue from the leasing of vehicles increased by 1.93% to R 851.342 million (2018/19: R 835.245 million). This can be attributed to the continued support displayed by client departments and administrators of the billing system (Fleet Information System)

The interest earned from the positive bank account increased by 11.81% to R 62.389 million (2018/19: R 55.798 million). The increase is due to higher balances in funds held with the financial institution and the investment account opened with the South African Reserve Bank which offers a higher return.

The revenue from the auctioning of vehicles increased by 34.58% to R 151.438 million (2018/19: R 112.541million). The increase is attributed to the increase in the auction intervals and the number of vehicles sold, conditions of the vehicles auctioned, and a better turnout for the auctions held during the financial year under review.

248 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 249 Table 3.2: Expenditure versus budget

2019/20 2018/19

FINAL ACTUAL (OVER)/UN- FINAL (OVER)/ PROGRAMME NAME APPROPRIA- EXPENDI- DER EXPEN- APPROPRIA- ACTUAL UNDER COL- TION TURE DITURE TION LECTION R’000 R’000 R’000 R’000 R’000 R’000

Office of the CEO 3 657 3 623 34 3 371 3 213 158

Office of the COO 427 694 (223) 444 445 (1)

Office of the CFO 9 086 7 434 1 652 8 891 6 647 2 244

Financial Services 16 894 15 180 1 714 15 923 13 917 2 007

Corporate Services 45 520 35 483 10 036 60 352 33 453 26 899

Marketing and Communica- 11 886 10 862 1 024 12 257 10 329 1 928 tions

Fleet Maintenance Services 166 012 120 563 45 449 156 009 138 328 17 681

Transport Support Services 251 233 231 909 19 325 236 786 230 517 6 268

Permanent Fleet 263 565 265 983 (2 418) 429 080 462 153 (33 073)

VIP & Pool Services 21 421 18 419 3 003 21 508 18 329 3 179

Total 789 746 710 149 79 597 944 620 917 330 27 290

The total expenditure decreased by 22.59% to R 710.149 million STATEMENT OF FINANCIAL POSITION (2018/19: R917.330 million). The decrease in expenditure is due to a significant decrease in capital expenditure (acquisition of vehicles), The Entity has a strong asset base which is reflective of the operations. repairs, and maintenance expenditure. Significant asset classes include finance lease receivables, property, plant and equipment, and cash funds. The liabilities are limited to finance The acquisition of vehicles decreased by 43.20% to R258.233 million lease obligation and payables which arise from the entity’s operations. (2018/19: R454.663 million). The drastic decrease can be attributed to administrative issues that were encountered in terms of the RT57 The carrying value of non-current assets decreased by 8.09% to R 1.341 contract which led to it being issued. billion (2018/19: R 1.459 billion). The acquisition of motor vehicles went down due to the RT57 contract being issued late. The employee costs increased by 3.88% to R 87.911 million (2018/19: R 84.628 million). This increase is due to a general salary increase and a The receivables from exchange transactions decreased by 26.34% to high number of interns appointed during the 2019/20 financial. R 169.261 million (2018/19: R 229.785 million). The debtor’s days decreased by 52.86% (the ratio indicating debt levels to revenue The cost of sales increased by 55.80% to R204.694 million (2018/19: generated from such debtors) is 47.93 days on 31 March 2020 (31 March R131.386 million). This can be attributed to more vehicles of high value 2019: 101 days). sold than the previous financial year. The Entity could convert its debt receivable into cash and this is reflected The surplus for the financial year increased by 11.06% to R 296.801 in the increase of cash funds to R 1.498 billion (2018/19: R 1.053 billion). million (2018/19: R 267.241 million). The increase is the result of an increase in total revenue from exchange transactions by 5.83% as The Accumulated Surplus increased from R 2 .685 billion on 31 March opposed to 3.96% increase in total expenditure. 2019 to R 2.976 billion on 31 March 2020.

248 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 249 CASH FLOW STATEMENT SALES OF CAPITAL ASSETS

The cash generated from operating activities increased to R 1.100 The following categories of assets were disposed of through a public billion (2018/19: R 1.035 million). This is mainly due to an increase in auction in line with the approved Assets Management Policy: debt collection from client departments, interest earned, and proceeds from auction. • Vehicles that reached the end of their respective life cycles, • Vehicles damaged in accidents, • Vehicles that have high mileage, and The cash spent on investing activities was at levels of R 32.726 million • Vehicles that have high repair costs. lower than the previous financial year. This is mainly due to a decrease in vehicle purchases. The acquisition of property, plant, and equipment UNAUTHORISED, FRUITLESS AND WASTEFUL EXPENDITURE decreased to R 259.111 million (31 March 2019: R 451.381 million).

No new irregular expenditure was incurred in the financial year under TARIFFS review, other than irregular contracts reported in the prior years. Irregular expenditure relates to the expiry of contracts relating to the leasing of The vehicles are purchased through the RT57 transversal contract property for the four (4) Regional Offices (Cape Town, Durban, East London, administered by National Treasury and after delivery are captured onto and Bloemfontein). the Fleet Information System (FIS). The Entity operates primarily under two (2) tariff regimes being the “Old” model tariffs and Full Maintenance Cases of fruitless and wasteful expenditure from previous financial years Lease (FML) tariffs. “Old” model tariffs have existed since 2002 and the were written off in line with the recommendations from the investigation FML tariffs were introduced in 2007. report and no transactions of fruitless and wasteful expenditure were reported during the financial year under review. The FML tariffs are more closely aligned to the costs that need to be recovered in respect of each vehicle leased to a client department. As SUPPLY CHAIN MANAGEMENT such, all new vehicle leasing arrangements entered into are under FML arrangements and the “old” model tariffs are being phased out. Most All orders and acquisitions that are below the R500 000 thresholds are vehicles are currently leased out under the FML tariff regime. administered by the Entity while tenders are awarded by the Departmental Bid Adjudication Committee (BAC) of which the Entity has a representative. The structure of tariffs is such that over the lease term, the Entity will All other Bid Committee functions such as Bid Specification and Bid recover the cost of the vehicle to ensure that the vehicle can be replaced Evaluation are carried and executed by the Entity. at the end of its useful life. Tariffs also consider the direct and indirect costs required to maintain the vehicle over the lease term. The direct In the financial year under review, there were no tenders awarded by the costs include the costs of a maintenance plan for routine preventative BAC relating to the Entity. maintenance, routine tyre replacements, tracking, and licensing. The indirect costs are encompassed in an administration fee, which covers GIFTS AND DONATIONS RECEIVED IN-KIND FROM the cost of the Entity’s staff and infrastructure, and non-routine repairs. NON-RELATED PARTIES Future expected inflation is added to these costs upfront and charged evenly each month. The Entity received gifts such as calendars, notebooks, pens, mugs, etc. All these gifts are signed and fully declared in the Entity’s register for The cost of fuel, oil, and toll gates are incurred by client departments gifts and donations. The Entity also received test drives from different using fuel cards. These costs are charged to client departments monthly vehicle manufacturers. based on the actual costs incurred on the fuel cards allocated to them. No exceptions, discounts, or free services are offered to client departments. EXEMPTIONS AND DEVIATIONS RECEIVED FROM NATIONAL TREASURY The tariffs have been reviewed in the current financial period, the tariff structure was submitted to Provincial Treasury for approval. The Trading Entity received two deviations in terms of the Public Finance Management Act or Treasury Regulations for the following services: FREE SERVICES

No free services were rendered that would have yielded significant 1. Security. revenue had a tariff been charged. 2. Vehicle tracking.

250 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 251 EVENTS AFTER THE REPORTING DATE There are no subsequent events to be reported upon at this stage.

ACKNOWLEDGEMENTS /APPRECIATION I wish to thank the MEC and HOD who have vested a great deal in assisting g-FleeT Management during these challenging times. I would also like to thank g-FleeT Management and staff for their committed dedication and hard work in striving to achieve the mandate of the Entity.

______Ms. N. Maninjwa Chief Executive Officer g-FleeT Management 31 October 2020

250 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 251 4. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF THE THE ANNUAL REPORT

To the best of my knowledge and belief, I confirm the following:

All information and amounts disclosed throughout the Annual Report are consistent.

The Annual Report is complete, accurate, and is free from any omissions.

The Annual Report has been prepared in accordance with the guidelines on the Annual Report as issued by the National Treasury.

The Annual Financial Statements (Part E) have been prepared in accordance with the Generally Recognised Accounting Standards and the relevant frameworks and guidelines issued by the National Treasury.

accordance with the modified cash standard and the relevant frameworks and guidelines issued by the National Treasury.

The Accounting Officer is responsible for the preparation of the Annual Financial Statements and the judgements made in this information.

The Accounting Officer is responsible for establishing, and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information, and the Annual Financial Statements.

The external auditors are engaged to express an independent opinion on the Annual Financial Statements.

In my opinion, the Annual Report fairly reflects the operations, the performance information, the human resources information, and the financial affairs of the Entity for the financial year ended 31 March 2020.

Yours faithfully,

______Accounting Officer Gauteng Department of Roads and Transport 31 October 2020

252 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 253 5. STRATEGIC OVERVIEW

We keep Government Service Delivery on the Move.

MISSION We will achieve our vision by:

• Providing effective, competitive, and efficient fleet services to government. • Focusing on providing reliable fleet to meet client needs. • Building and maintaining sustainable stakeholder relations.

VALUES Furthermore, core values applicable to the Provincial Government were revised and reflect as follows:

““…Competence, Accountability, Integrity, and Responsiveness…” “

These values are all underpinned by the concept of teamwork and will apply to the Entity as well as to all officials of g-FleeT. A detailed description of what each core value encapsulates is outlined on the next page.

252 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 253 VALUES DETAILED DESCRIPTION

We commit to being competent and excellent at all times.

We undertake to deliver services with passion, excitement, and enthusiasm.

COMPETENCE Our people can do the tasks they are appointed to do, live our values, and always strive for excellence.

We all deliver on our outcomes and targets with quality, on budget, and in time.

We demonstrate an understanding of and work together to achieve our role in our Constitutional and electoral mandate.

We pledge to be answerable to our stakeholders in the execution of our mandate and service delivery activities.

We commit to deliver a service that meets our stakeholders’ expectations.

We have a clear understanding of our objectives, roles, delegations, and responsibilities. ACCOUNTABILITY We are committed to delivering agreed outputs on time.

We hold each other accountable and know we can trust to do and we say we will.

As individuals, we take responsibility and ownership for our outcomes and accept the consequences of failure to do so.

We commit to being ethical, professional, principled, fair, and just in our conduct.

We pledge to uphold sound principles of institutional management and efficient systems and processes in service delivery.

We seek truth and a greater understanding of it in each situation and we do the right things. INTEGRITY

We are honest, show respect, and live out our positive values.

We are reliable and trustworthy, doing what we say we will

There are no grey areas with integrity applying at all levels in all instances ensuring we are corrupt free.

We shall be approachable, receptive, and quick to respond to stakeholder needs.

We take our fellow public servants seriously, listening to and hearing their voices. (listening a lot and talking less)

We respond with action timeously, always asking is this the right response, where we could be potentially wrong, and how we RESPONSIVENESS can do it better?

We engage collaboratively with each other, our stakeholders, and the media providing full information.

Our focus is the past, present, and future public service citizens, and responding as their government for the best results for the people we serve. They tell us how well we respond.

254 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 255 6. LEGISLATIVE AND OTHER MANDATES

The Entity’s operations are largely regulated by the National Transport Circular No. 4 of 2000, which governs all matters relating to the utilisation of government-owned transport.

Regulation 19 issued in terms of the Public Finance Management Act of 1999 governs the operations of the organisation in terms of its policy and reporting framework, establishment, capital requirements, disposal of assets, the surrender of surplus funds, and financial reporting. In addition, the following legislative mandates are applicable:

• Cross-Border Road Transport Act, Act 4 of 1998. • Road Traffic Act, Act 29 of 1989. • Public Finance Management Act, Act 1 of 1999. • National Environmental Management Act, • Road Traffic Management Corporation Act, Act 20 of 1999. • National Road Traffic Act, Act 93 of 1996. • National Road Traffic Safety Act, Act 12 of 1972. • Gauteng Transport Framework Revision Act, Act 8 of 2002. • Gauteng Public Passenger Road Transport Act, Act 7 of 2001. • Gauteng Transport Infrastructure Act, Act 8 of 2001. • Gauteng Planning and Development Act, Act 3 of 2003. • Provincial Road Traffic Act, Act 10 of 1997. • Gauteng Toll-Roads Bill 2005. Administrative Adjudication of Road Traffic Offences Act, Act 46 of 1998. • Gauteng Transport Framework Revision Amendment Act, 2007.

Policy & Other Mandates The following policy mandates are applicable:

• White Paper on National Transport Policy. • National Land Transport Strategic Framework. • Provincial Policy and Legislative Mandates • Gauteng White Paper on Transport Policy. • Gauteng Transport Legislative Framework. • Gauteng Legislation on Development Planning.

254 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 255 7. ORGANISATIONAL STRUCTURE

CEO Ms. Noxolo Maninjwa

ACTING COO ACTING CFO Mr. Nhlakanipho Nduli Mr. Mbasa Ngumla

DIR DIR ACTING DIR ACTING DIR DIR ACTING DIR PERMANENT FLEET TSS FLEET MAINENANCE VIP POOL SERVICES CORPORATE SERVICES FINANCE

Ms. Ravanne Matthews Ms. Salomie Jafta Mr. Sifiso Mhlongo Mr Douglas Scott Vacant Mr. Matodzi Mamatsinya

256 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 257 PART B PERFORMANCE INFORMATION

256 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 257 1. AUDITOR GENERAL’S REPORT PREDETERMINED OBJECTIVES

The AGSA currently performs the necessary audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the management report, with material findings being reported under the Predetermined Objectives heading in the Report on other legal and regulatory requirements section of the auditor’s report.

Refer to page 324 - 326 of the Report of the Auditor General, published as Part E: Financial Information.

258 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 259 2. OVERVIEW OF THE ENTITY’S PERFORMANCE

Service Delivery Environment for 2019/20

This section deals with external factors that have had an impact on Finally, the change of bankers from Standard Bank to ABSA bank by RT the ability of the Entity to deliver on its commitments during the 46 service provider came with its challenges. Specific challenges arising financial year. from this include:

RT 46 CONTRACT • The migration process was not very smooth and had delays. • Delays meant not enough ABSA approved merchants to conduct RT46 contract is a transversal vehicle service and maintenance contract repairs resulting in extended turnaround times on repairs. administered by the National Treasury of South Africa. The contract • Loss of information during the migration process. expired on 31 March 2020. The National Treasury has extended the • Not enough time was allocated for the migration of data. contract by 12 months (i.e. April 2020 to March 2021). • Misdirected authorization and claim requests. • No clear delegation of responsibility at the bank when there are RT 46 allows card payments for fuel, accident repairs and maintenance shift changes, or when a person in charge went on leave. as well as tolls. It further aids in the assessment of the reasonableness • Vehicles were sent to non-existent merchants. of repairs and maintenance (i.e. Review of quotations received from • The client was sent to merchants who are not in the same vicinity. service providers) as well as monitoring of vehicles. • Transit Solution could not provide the required monthly report. • There were delays in towing services. The major challenge has been turnaround times on accident repairs. • There were delays in repairs inspections. Much time and effort are spent on resolving operational matters with • Delays in issuing of petrol cards and when they arrived, it had service providers. These include scheduling services, quality of repairs, incorrect information. and evaluation of quotations. Intervention during the year included • Utilisation reports not forthcoming. continuous engagement with the RT46 service provider to resolve the • Reverting to manual petrol card application when ABSA took over issues throughout the year. • Order processes not allowing for tracking and tracking of the petrol cards as was the case with Standard Bank. Other challenges included that the contract expired on 31 March 2020 • ABSA queries directed to the Call Centre and not to Key Account while preparing for the new service provider by National Treasury was Managers as was the case with Standard Bank. not been concluded. The National Treasury, therefore, requested the • Delays in resolving queries. current service provider to extend the services by one year (i.e. 01 April • Limited bouquet of services provided by ABSA. 2020 to 30 March 2021). This process was concluded very late in March 2020 and negatively impacted the Entity’s ability to timeously distribute the fuel cards to client Departments. This was further compounded by the lockdown from 27th March 2020. The Entity, therefore, prioritized all Departments and Municipalities offering essential services during the COVID-19 stage five.

258 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 259 RT57 CONTRACT

The RT57 (purchasing of vehicles) is a transversal contract managed by Protect Movable Assets through Vehicle Tracking: The Entity concluded the National Treasury (through the Office of the Chief Procurement Officer) a contract in December 2019 with the service provider for a comprehen- and the National Department of Transport. It provides a streamlined sive vehicle tracking solution for a period of three (3) years. The track- process to purchase vehicles at reduced prices, although the choice of ing device will perform GPS (Global Positioning System), technology for vehicles and engine capacity resides primarily with the user department. locating the vehicle registration number and location in a map, driver It also provides departments access to considerable discounts as well as identification, driver profiling, braking, speed offences, excessive idling, public-sector vehicles with special specifications. Even though the RT57 and over-revving. Furthermore, the new devices will assist in managing contract was only finalized in September 2019, the Entity purchased a weaknesses identified within the driver tag process. This will help the total number of 695 vehicles on the transversal contract during the period Entity to better track its vehicles and manage driver behaviour. under review. Vacancy rate: The Entity continues to experience challenges with its va- The Under-serviced debt owed to the Entity by its client departments cancy rate. The vacancy rate is currently sitting at 28%. The Entity has The efforts put by the Entity, particularly finance officials and senior man- seven (07) contract workers under their employ, reducing the vacancy agement in making sure that debtors management policy is fully imple- rate to 25%. The process of obtaining approval for the Service Delivery mented and adhered to, resulted in the reduction of average debtors’ Model, Business Case and Organisational Structure that was developed days by 52.86% excluding departments that submitted the payment plan. during 2017, was overtaken by a new process by DRT (of reviewing and This outstanding performance surpassed the set annual target of 20%. realigning the organisational structure) during the year under review. Organisational Environment for 2019/20. This process is envisaged to run for six (06) months from February to August 2020. Upon finalization, the Department will submit the proposed This section deals with internal factors that have had an impact on the structure to the Department of Public Service and Administration (DPSA) ability of the Entity to deliver on its commitments during the financial through the Office of the Premier for concurrence. year under review. The process of filling critical and funded posts that was started during Improve Audit Outcome: The process of implementing the Sustainability the last month of the 19/20 financial year has been put on hold due to the Plan and the Information and Communication Technology Strategy to im- moratorium placed by DRT in 2019. prove the performance and internal control systems of the Entity is still is ongoing.

260 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 261 3. STRATEGIC OUTCOME ORIENTED GOALS

The following Strategic Priorities/Goals represent the 2014-2019 Strategic Plan and 2019/20 Annual Performance Plan, to facilitate the Turnaround Strategy and achievement of the Entity’s MTEF goals:

Provide fleet management services that are effective, efficient and Strategic Goal 1 (Summary) client-focused

Provide reliable fleet and quality services to meet our client’s needs in an effective Goal Statement and efficient manner.

This goal will ensure that services offered to clients meet expectations and that Justification public funds are utilised to provide a service to support the mandates of client departments.

Strategic Goal 2 (Summary) Sustainable and well-governed organisation

Ensure a well-run organisation by designing and maintaining effective systems and Goal Statement processes that will result in optimal use of the Entity.

This goal will ensure that financial processes, systems, and controls will be imple- Justification mented and monitored by staff with the requisite expertise.

260 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 261 4. PERFORMANCE INFORMATION BY PROGRAMME

PROGRAMME 1: OPERATIONAL MANAGEMENT SERVICES This programme is responsible for providing fleet management services that are effective, efficient, and client-focused.

The following is the sub-programme structure: • Permanent Fleet • Finance

Strategic Objective 1. Provide clients with reliable and cost-effective fleet.

PROGRAMME NAME: OPERATIONAL MANAGEMENT SERVICES

Deviation from Actual Actual Actual Actual planned Com- Perfor- Planned Strategic Achieve- Achieve- Achieve- Achieve- target to ment on mance Target objectives ment ment ment ment Actual deviations Indicator 2019/20 2016/17 2017/18 2018/19 2019/20 Achieve- (reason) ment for 2019/20 The fine balance between the intake of new vehicles and the Average 3.4 Years 3.4 Years 3.6 Years ≤ 4 Years 3,5 Years +0,5 with- age of fleet drawal of redundant vehicles Provide had a pos- clients with itive effect reliable and on the fleet cost-effec- age. tive fleet. High popu- larity level of the Entity’s auction for Percentage New New selling of vehicles 91% 80% 91% +11% Indicator Indicator vehicles auctioned that are in good condition and reasonable prices. Percentage of vehicles compliant 89.75% 46.25% n/a n/a n/a n/a n/a to scheduled maintenance

*Performance indicator was reported on an operational level from the 2018/19 financial year.

262 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 263 LINKING PERFORMANCE WITH BUDGETS Programme Expenditure

2019/20 2018/19

Actual Actual Actual Actual Sub- Programme Planned Target Final Achievement Achievement Achievement Achievement Name 2019/20 2016/17 2017/18 2018/19 2019/20

Permanent Fleet 263,565 265,983 (2,418) 429,080 462,153 (33,073)

Finance 16,894 15,180 1,714 15,923 13,917 2,006

Total 280,459 281,163 (704) 445,003 476,070 (31,067)

Strategic objective 2: To provide quality and value-added client services by monitoring vehicle location and maintaining turn-around times for accident and mechanical repairs.

The following is the sub-programme structure: • Transport Support Services • Fleet Maintenance

PROGRAMME NAME: OPERATIONAL MANAGEMENT SERVICES

Deviation from Actual Actual Actual Actual planned Perfor- Planned Comment on Strategic Achieve- Achieve- Achieve- Achieve- target to mance Target deviations objectives ment ment ment ment Actual Indicator 2019/20 (reason) 2016/17 2017/18 2018/19 2019/20 Achieve- ment for 2019/20 The rollout and Percentage implementation of in-service 93.6% 93.1% 93% 87% of the new 92% (6399) -6% vehicles (6230) (6655) (5517) (5158) tracking tender tracked only started in February 2020. Vehicles awaiting parts on To provide backorder, and a high number quality and Average of updates value-add- turnaround (unforeseen ed client time for 18 days 23.5 days 37.5 days 30 days 44.25 Days 14.25 days damage) on service by accident repairs monitoring repairs vehicle lo- contribute to cation and lengthy maintain- turnaround ing turn- time. around Close monitor- times for Average ing of the of accident turnaround the mechanical and me- time for 18 days 23.5 days 37.5 days 15 days 11 Days + 4 Days repairs process, chanical mechanical and improved repairs. repairs staff capacity (interns) Percentage of client satisfaction levels for 89% N/A 74% N/A N/A N/A N/A all g-FleeT’s client departments

262 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 263 Strategy to overcome areas of underperformance:

Vehicle Tracking: The old contract on the comprehensive tracking solution expired on 31 March 2019, g-FleeT anticipated that the new tender (service provider) to be awarded (appointed) by 1 April 2019 but the tender was cancelled. The new tender was awarded in July 2019 and the contract was concluded in December 2019, therefore the rollout and implementation of the new tracking system only started in February 2020.

The Entity will work with the service provider and ensure that the targets set for the new contract will be achieved. The new comprehensive tracking solution will be provided over a three (3) year period.

Turnaround time for Accident repairs: RT46 service provider is working closely with the merchants to monitor and manage the turnaround times on backorder, and the Entity is encouraging strip and quote on major accident repairs for proper assessment before repairs. This approach seems to be yielding some improvement.

Changes to planned targets and objectives: None.

LINKING PERFORMANCE WITH BUDGETS Programme expenditure

2019/20 2018/19

Sub- Programme Final Appropri- Actual (Over)/Under Final Actual (Over)/Under Expen- Name ation Expenditure Expenditure Appropriation Expenditure diture

R’000 R’000 R’000 R’000 R’000 R’000

Transport Support 251,233 231,908 19,325 236,786 230,517 6,269 Services

Fleet Maintenance 166,012 120,563 45,449 156,009 138,328 17,681

Total 417,245 352,471 64,774 392,795 368,845 23,950

Fleet Maintenance: The reason for under expenditure is due to the increased withdrawal, and disposal of vehicles that has reached their economic/ replacement life circle as per g-FleeT’s replacement plan i.e. strategic objective annual target with the standard lease parameters of 3 years/100 000 km (client contract parameters). Old model vehicles with high mileage contribute to the high maintenance costs of vehicles, and their replacement cuts down the overall fleet maintenance costs.

The successful auctioning of withdrawn vehicles during the year under review also justifies the under expenditure of maintenance.

Transport Support Services: recorded an under expenditure of R19,325 million relating to vehicle tracking services. The new comprehensive vehicle tracking tender was concluded in July 2019 and the contract was concluded in December 2019. The delays in the installation of the tracking devices under the new contract resulted in an under expenditure.

PROGRAMME 2: CORPORATE AND FINANCIAL MANAGEMENT This programme is responsible for ensuring a well-run organisation by designing and maintaining effective systems and processes that will result in optimal use of the entity’s assets in the delivery of services.

The following are the sub-programme structures: • Finance • Permanent Fleet • ICT • VIP and Pool Services • Corporate Services

264 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 265 Strategic objective1: Optimise return on investment. Optimal use of the Entity’s assets in the delivery of services that are cost-effective and yield return to ensure sustainability.

PROGRAMME NAME: OPERATIONS AND FINANCE

Deviation from Actual Actual Actual Actual planned Com- Perfor- Planned Strategic Achieve- Achieve- Achieve- Achieve- target to ment on mance Target objectives ment ment ment ment Actual deviations Indicator 2019/20 2016/17 2017/18 2018/19 2019/20 Achieve- (reason) ment for 2019/20 Average number of business days from A focused delivery and of vehicle determined to g-FleeT 23 business 23 business 18 business 20 business 17 business team effort to active +3 days days days days days days resulted in vehicle con- the achieve- tract with ment of the client (lease target. vehicles only from Permanent unit) Average percentage Average of rental 66.35% (VIP Elevated rental days uti- and Pool 64.84% 42.36% 53.94% +3.94 demand utilisation lised for VIP fleet) from clients of 50% self-drive vehicles Average percent- Average age of 66.35% (VIP Elevated rental rental days and Pool 91.14% 85.14% 81.84% +12.84 demand Optimise utilisation utilised fleet) from clients return on of 69% invest- for Pool ment. vehicles

Approved tariff structure implemented for the 2018/19 Annual Tar- Annual Tar- Reviewed Annual Tar- financial iff Structure iff Structure tariff iff Structure Memo year. for 2020/21 submitted structure for 2020/21 has been was to has been submitted N/A N/A submitted Reviewed submitted Provincial submitted to Provincial to Treasury. annual tariff to Provincial Treasury for to NT for Treasury for structure Treasury for approval approval. approval for 2019/20 approval. submitted to Provincial Treasury for approval.

264 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 265 PROGRAMME NAME: OPERATIONS AND FINANCE

Deviation from Perfor- Actual Actual Actual planned Com- Planned Strategic mance Achieve- Achieve- Actual Achieve- Achieve- target to ment on Target objectives Indica- ment ment ment 2018/19 ment Actual deviations 2019/20 tor 2016/17 2017/18 2019/20 Achieve- (reason) ment for 2019/20 Driver 2: Not Achieved. Digital, Phase 2 implemen- Technol- tation of Sustain- ogy, and ability Model. Analytics: Completion ICT of Imple- CRM • CRM System mentation system de- module of phase veloped and developed. 2 of the installed. • Market Sustainabil- (Business Research FIS was ity Model: processes completed. Driver 2: were Sustainabil- 33% of • EDRMS Digital, shared with ity model phase 1 quotation signed Technol- e-GOV, the has been imple- off. ogy, and system was n/a n/a devel- mented. • Microsoft Analytics developed, oped and (partially 365 was CRM Sys- system approved. achieved). implemented. tem rollout demo Imple- • PABX and conducted, menta- implemented. system im- tion of Procurement plemented sustain- Human of Key and training ability Resources Man- conducted. model • Memorandum agement of understanding System Procured (MOU) between and Optimise g-FleeT and the installed for return on National School VIP and Pool invest- Government signed. business ment. • Senior unit. Management Driver 5: Change Approved Approved Management Project Initi- Project training. ation plans Initiation • Occupational approved Plans for Health and for Phase 2 Phase2 In- Safety Infrastruc- frastructure n/a n/a Management ture Proj- Projects, training. ects, Panel Panel Driver 2: Digital Beating, Beating, technology and Wellness Wellness analytics Centre, and Centre, and Car Wash. Car Wash. CRM system rollout: • Market research for FIS was completed. • eDRMS quotation signed. • Microsoft 365 was implemented. • PABX implemented.

266 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 267 PROGRAMME NAME: OPERATIONS AND FINANCE

Driver 5: Capital allocation plan approved. Constant 20% (Excluding implementation Percentage amounts owed of debtors’ decrease in Decreases by 2% by clients that management 22% (119 days) 13.09% 70.36% +50.36% average debtor (117 days) have submitted policy and days written payment involvement arrangements) of senior management

Strategy to overcome areas of underperformance:

Implementation of the sustainability model: The Entity will be procuring a new Fleet system that will incorporate a full version of the CRM system. The planned procurement of the fleet system will begin in the 2020/21 financial year. Continuous improvement to be included as part of the value chain.

Changes to planned targets and objectives: None.

Linking performance with budgets

Programme expenditure Finance: The under-spending can be attributed to delays in appointing a service provider in assisting the Entity with tariff reviews.

2019/20 2018/19

Final Appropri- Actual (Over)/Under Final Actual (Over)/Under Sub- Programme Name ation Expenditure Expenditure Appropriation Expenditure Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

VIP and Pool Services 21,421 18,419 3,002 21,508 18,329 3,179

Finance 16,894 15,180 1,714 15,923 13,917 2,006

Total 38,315 33,599 4,716 37,431 32,246 5,185

266 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 267 STRATEGIC OBJECTIVE 2: Engender organizational and culture change To build and maintain a healthy organization with effective operations.

PROGRAMME NAME: OPERATIONS AND FINANCE

Deviation Actual Actual Actual Actual from planned Comment on Strategic Performance Planned Target Achievement Achievement Achievement Achievement target to Actual deviations objectives Indicator 2019/20 2016/17 2017/18 2018/19 2019/20 Achievement (reason) for 2019/20 1.Late issuing Percentage and activation of of undisputed vendor numbers 81% (1591 invoices paid for 3rd party 83% invoices paid 94% 100% 96% -4% within 30 days claims within 30 days) from receipt of 2. Late invoice. certification of payments Unqualified Audit Report Unqualified Unqualified Unqualified Unqualified audit report from from Auditor audit opinion for opinion with opinion with Not applicable Not applicable opinion Auditor General General 16/17 FY findings 2017/18 findings 2018/19 for 2018/19 Driver 2: Digital, Technology, and Analytics:

CRM system developed and Phase 2 installed. Implementation 2019/20 ICT Plan (Business of ICT Strategy: Implemented. Engender processes were shared with organisational FIS Market Customer e-GOV, system and culture Implementation ICT strategy research was Relationship 50% of Phase 1 was developed, change of ICT Strategy/ approved by HOD completed. Management n/a n/a implemented system demo Plan (100%) System (CRM) conducted, PABX and Procurement system implemented. of Key implemented Management and training Microsoft 365 System. conducted. implemented.

Procured and installed for VIP and Pool business unit. Township Percentage of businesses are maintenance not prioritized, expenditure on and the early 5% 4% Gauteng 2% 5% 3.8% -1.2% disposal of (R6 286 398.55) (R 827 718.36) township vehicles that are businesses out of warranty (automotive) also has an impact.

Employee satisfaction rate/ -50% n/a n/a n/a n/a n/a n/a percentage

Percentage of employee PMDS 92% n/a n/a n/a n/a n/a n/a assessments completed.

Review, Draft structure approval, and for consultation implementation developed and n/a n/a n/a n/a n/a n/a of organizational submitted on structure 12/02/2016. Implementation of the Apprenticeship n/a n/a n/a n/a n/a n/a apprenticeship plan approved. programme.

268 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 269 Strategy to overcome areas of underperformance

Payments of invoices: Although there has been an improvement in terms of paying undisputed invoices within 30 days from receipt of invoice (2018/19 - 94%:2019/20- 96%), the Entity will continue to engage the relevant parties in a bid to comply with Treasury regulation 8.2.3.

Furthermore, the Entity is embarking on a process to have all its suppliers to register on the electronic Invoicing system and rolling out the automation of payments for contracted suppliers.

Maintenance Expenditure: The engagement mandate was reviewed to ensure Township businesses are prioritized, and non-warrantable repairs/ items were identified in line with the engagement mandate to improve on township business spent.

Changes to planned targets and objectives

Linking performance with budgets

Programme expenditure

2019/20 2018/19

Sub- Programme Final Appropri- Actual (Over)/Under Final Actual (Over)/Under Expen- Name ation Expenditure Expenditure Appropriation Expenditure diture

R’000 R’000 R’000 R’000 R’000 R’000

Corporate Services 45,520 35,483 10,037 60,352 33,453 26,899

Total 45,520 35,483 10,037 60,352 33,453 26,899

268 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 269 5. CAPITAL INVESTMENT

5.1 CAPITAL INVESTMENT, MAINTENANCE, AND ASSET MANAGEMENT PLAN.

2019/20 2018/19

Infrastructure Final Appropri- Actual (Over)/Under Final Actual (Over)/Under projects ation Expenditure Expenditure Appropriation Expenditure Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

New and replace- 258,598 -318 424930 456772 -31842 ment assets 258,916

Existing infrastruc- 0 0 0 ture assets

Upgrades and 6,949 6,954 -5 14520 3702 10818 additions Rehabilitation, renovations, and refurbishments Maintenance and 50 32 18 repairs

Infrastructure

transfer

Current

Capital

Total 265,597 265,902 -305 439,450 460,474 -21,024

270 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 271 PART C GOVERNANCE

270 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 271 1. INTRODUCTION. the implementation of its long-term strategy, responding to a disaster, as well as overall management of its assets. Some of the reasons for delays The Entity regards governance as fundamentally important to the in implementing the mitigating strategies include lack of skills, high va- achievement of its strategic objectives and the fulfilment of its respon- cancy rate, outdated structure, and legal challenges for phase 2 projects. sibilities in meeting service delivery standards. It is paramount that the Several risks have been carried into the new financial year’s strategic Entity ensures that its values are well defined and are entrenched in all risk register with improved mitigating strategies. structures of the organisation. The Entity has applied the principles as set out in in the code of professional conduct, ensuring that its leader- The Entity through DRT has started the process of reviewing and realign- ship applies the ‘tone at the top’ approach in carrying out responsibilities ing the organizational structure. This project is envisaged to be complet- in good faith, with due diligence and care, for the best interests of the ed before the 2020/21 financial year. Critical posts to be advertised and Entity and all its stakeholders. The Entity always strives to maintain and filled by end of the 2020/21 financial year. improve its standards of good governance through the concerted efforts of various management committees. The rehabilitation of the three buildings (Panel Beating Workshop, Well- ness Centre, and Car Wash) will commence during the 2020/21 financial 2. RISK MANAGEMENT, FRAUD, AND CORRUPTION year and the Phase 2 projects will commence once the legal challenges have been resolved. Risk Management is an essential function in ensuring that the Entity employs effective and efficient means in managing risks that can hinder 3. MINIMISING CONFLICT OF INTEREST the achievement of its objectives. Strategic as well as operational risk assessments were conducted, and mitigating factors were identified for The Entity, through the internal control systems monitored by the Office implementation. Emerging risks are continuously identified as per chang- of the MEC, ensures that all Senior and Middle Management members es in the environment, legislation as well as strategies considering both declare their interest on an annual basis in line with the requirements of internal and external factors. Risk registers are living documents, they the Public Service Commission. are amended at any time to best suit the circumstances the Entity faces that could hinder the achievement of its objectives. Risk assessments are Furthermore, employees on levels 1 to 12 are encouraged to request per- also used to formulate risk-based audit plans which are approved by the mission to perform work outside their normal remunerative work. In re- Audit Committee. lation to the Supply Chain Management processes, directors of all companies submitting quotations to provide goods or services are required to The Risk Management Committee is regulated by the approved Risk complete SBD 4 Declaration forms. Management Committee charter. The committee is chaired by the Chief Executive Officer. The plans to appoint an independent chairperson are The internal audit section from Gauteng Audit Services conducts a data underway as per best practice. The performance and progress of the analysis review bi-annually to evaluate whether legislative requirements risk management are monitored and reported at the Risk Management and/or prescripts are adhered to. The scope of this Audit initiative in- Committee on a quarterly basis. The committee provides the risk-miti- cludes ‘the identification of officials in the service of the Department gating factors and monitors the movement of risk ratings with the view who are also listed as directors/shareholders in a company trading with of improving the control environment. The Risk Management Committee Gauteng Provincial Government (GPG) departments or entities. considers the progress of implementation of recommendations on audit findings, performance report, Occupational Health and Safety report, In- 4. CODE OF CONDUCT formation and Communication Technology report, risk report, and other matters relating to risks. The Entity utilises the Department of Public Service and Administration Code of Conduct. Cases of misconduct are escalated to the Gauteng De- The Entity subscribes to the zero-tolerance stance against Fraud and Cor- partment of Roads and Transport for investigation and recommendations ruption. In a bid to ensure that the Fraud and Corruption activities are from the investigations are implemented by management. eliminated, the Entity works in partnership with the Gauteng Department of Roads and Transport and Gauteng Provincial Treasury. The Fraud Pre- 5. HEALTH SAFETY AND ENVIRONMENTAL ISSUES vention Plan has been approved and the implementation of the action plans is monitored on a quarterly basis. The establishment of the Occupational Health and Safety (OHS) Committee Progress made in addressing the identified risks Below are the Entity’s top risks, that were identified by manage- The Entity is in the process of re-establishing the Occupational Health ment throughout the financial year: and Safety (OHS) Committee. The focus during the financial year under review has been to get the senior management and members of the OHS • Ineffective management of outsourced services Committee trained in the various areas of specializations in alignment • Delays in awarding the tenders with the act. • nability to respond to disaster • Compromised Implementation of the long-term strategy Addressing the OHS issues in the organization has been a focal point • Ineffective control over the movement of assets particularly through the plans of the Facilities and Securities Unit. The • Poor revenue collection Facilities and Securities Unit continued to implement the recommendations from the OHS audit report approved in March 2017. The major delay The Entity has implemented most of its action plans relating to the man- that has been experienced is with the Phase 2 Infrastructure projects agement of outsourced services and the collection of revenue. Few action that will contribute extensively in addressing OHS issues related to the plans still need to be completed for the risk relating to awarding tenders, dilapidated and old infrastructure within the Head Office premises. The The Entity experienced challenges in addressing risks associated with Entity is in the process of getting assistance from the Department of

272 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 273 Infrastructure Development (DID) to maintain the buildings of the Entity.

Continuous monitoring and maintenance of the facilities will continue to be done. The major concern is the support from the staff in ensuring that once OHS issues in their environment have been addressed and rectified, they ensure the upkeep and respect for the property.

The organization will continue to manage the issues and address them accordingly within the resources available and will continue to create a conducive environment for staff to contribute to the service delivery, morale, and productivity in the Entity.

6. PORTFOLIO COMMITTEES

Questions Emanating from the 1st Quarter Report for 2019/20

Reference No Question / Recommendation Department Response 01 The Entity should provide progress The Entity continued and will continue to monitor the enforceable payment plan with the Gauteng Department on payment arrangements by the of Health every month. To date, the Gauteng Department of Health has paid all current charges in the current client Departments. financial year and further paid R19.645 million as a second instalment of the payment plan.

The Gauteng Department of Infrastructure Development and National Prosecuting Authority have both settled their respective year-end debts of R14,593,963.37 and R5,429,928.21. These two client departments, when they were unable to honour their contractual obligations towards the end of the 2018/19 financial year due to financial constraints, requested to settle the outstanding balances in the first quarter of the 2019/20 financial year and they have since honoured their respective settlement agreements.

Overall the Entity, as of 31 August 2019, has collected a total of R354.252 million which is consistent with a monthly target of collecting an average of R72 million. With these collections, the Entity managed to reduce the overall debt book from R214.937 million at the beginning of the year to R145.080 million at the end of August 2019.

Questions Emanating from the 2nd Quarter Report for 2019/20

Reference No Question / Recommendation Department Response 01 The Entity should give progress on Due to the moratorium placed by the Gauteng Department of Roads and Transport in 2019, the Entity could the filling of the COO and CFO posts. not proceed with the recruitment process for the COO post that was advertised during the first quarter of the 2019/20 financial year.

However, the Entity has submitted a new request for approval for the advertising, shortlisting, and interviews of critical and funded posts to the Department.

272 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 273 Questions Emanating from the 3rd Quarter Report for 2019/20

Reference No Question / Recommendation Department Response 01 The Entity should give progress During March 2018, the Gauteng Department of Infrastructure Development submitted a written payment on the clients that have submitted arrangement of about R7 million which was settled in April 2018. written payment arrangements. In April 2018, the Gauteng Department of Health (GDoH) submitted a written payment commitment for an outstanding balance of R111 million as of 31 March 2018. The commitment was structured as follows:

The settlement of the opening balance of R111 million:

1st Instalment: May 2018 – R25 million 2nd instalment: May 2019 – R25 million 3rd and final instalment: May 2020 – R61 million

Progress of the submitted written payment commitment as of 31st December 2019:

1st payment – R21,581,496.89 – May 2018 2nd payment – R3,588,806.16 – May 2018 3rd payment – R1,877,414.49 – December 2018 4th payment – R19,645,269.93 – August 2019

The Entity is anticipating that GDoH will pay the last instalment of R64.389 million by end of May 2020.

In addition to the arrangement of the R111 million owed as of 31 March 2018, GDoH committed to pay current monthly invoices within 30 days from date receipt. The outstanding amount for current monthly invoices as of 31 December 2019 was R27.012 million. This is the commitment they have been adhering to.

The GDoH owes the Entity a total sum of R91,401,404.68 as of 31 December 2019. The outstanding balance’s age analysis is as follows:

Current: R13.325 million; 30 days: R13.687 million and 180 days and more: R64.389 million.

Lastly, in January 2019, the National Prosecuting Authority of South Africa also submitted a written payment arrangement of three outstanding invoices (October 2018, November 2018, and December 2018) which were eventually settled in April 2019.

The Entity considers all settlement proposals or plans on an individual basis, and such plans are monitored on monthly basis.

02 The Entity should provide progress Due to the moratorium placed by the Gauteng Department of Roads and Transport in 2019, the Entity could on the recruitment process to fill the not proceed with the recruitment process for the posts that the Entity had already advertised and interviews vacant positions. conducted for some posts.

However, the Entity has submitted a new request for approval for the advertising, shortlisting, and interviews of critical and funded posts to the Department.

The GDRT has appointed a service provider to review the organisational structure of the Department and g-FleeT for a period of six (06) months from mid-February 2020 to August 2020 and the process of realignment has commenced.

03 The Entity should also provide a The Committee to note that all g-FleeT disciplinary cases are handled by the Department of Roads and summary of each disciplinary case Transport (GDRT). There are currently (08) disciplinary cases. Six (06) cases are handled by the Entity and two and progress so far. (02) cases are handled by GDRT.

274 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 275 The table below provides progress so far:

Number of Outstanding Cases Cases Progress to Date Misconduct Cases 6 Case 1. The investigation report is on route for signatures.

Case 2. An investigation officer has been appointed and the process is still ongoing.

Case 3. An investigation officer has been appointed and the process is still ongoing.

Case 4. The charge sheet and the investigation report has been received and on route for signatures.

Case 5. The charge sheet has been signed and issued to the official. The official will be appearing before the hearing upon confirmation date by the presiding officer. Case 6. An investigation officer has been appointed and the process is still ongoing.

Number of Outstanding Cases Cases Progress to Date g-FleeT cases investigated 2 With regards to the two cases investigated by GDRT, the hearing for the first case is scheduled to sit on 28 February by GDRT 2020 and the matter is in court for the second case, and a notice of set down will be on 03 April 2020

Total 8

274 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 275 Questions Emanating from the 4TH Quarter Report for 2019/20

Reference No Question / Recommendation Department Response 01 The Entity should provide a detailed The total adjusted budget for the 2019/20 financial year was R789,746 million and the Entity spent R710,149 report on the under expenditure million (90%) as of 31 March 2020. The Entity has underspent the allocated budget by a total of R79,597 recorded at the end of the financial million. year. Reasons for under expenditure:

The under expenditure for the 2019/20 financial year is attributed to underspending on Compensation of Employees and Goods and Services.

Compensation of Employees The budget for Compensation of Employees was based on the filled and funded vacant posts. The funded vacant posts were in relation to critical positions that were anticipated to be filled during the 2019/20 financial year. However, a moratorium was issued by the Gauteng Department of Roads and Transport during the year to halt all recruitment processes, this resulted in under expenditure of R5,110 million within the Compensation of Employees category.

The GDRT appointed a service provider in January 2020 to review and re-align the organisational structure. This exercise was expected to be completed by 30 March 2020, however, due to the COVID-19 delays, the proposed organisational structure is anticipated to be submitted to the Department of Public Service and Administration by 30 September 2020 for concurrence.

Goods and Services An amount of R1,200,000 was budgeted within the office of the CFO for the review and benchmarking of the Entity’s tariffs however could not be concluded in the 2019/20 financial year due to a protracted tender process. The project has been rolled over to the 2020/21 financial year. The Departmental Bid Adjudication Committee (BAC) approved the Terms of Reference and Tender Specification during February 2020

The under expenditure of approximately R10 million within Corporate Services relates to savings emanating from the Cost Containment Measures in relation to the hiring of venues and facilities, research for the fleet management system, workshops, and training.

Maintenance Services recorded an under expenditure of R45,449 million relating to repairs and maintenance of the fleet. This under expenditure is attributed to the average age of the fleet. The average age of the fleet for the 2019/20 financial year was less than four years, consequently, the repair and maintenance costs per vehicle were lessened.

Transport Support Services recorded an under expenditure of R19,325 million relating to vehicle tracking services. The new comprehensive vehicle tracking tender was concluded in July 2019 and the contract was concluded in December 2019. The installation of the tracking devices resulted in expenditure.

02 The Department should provide Progress report on active payment arrangements with the owing client departments as of 31 March 2020. a detailed report on the payment arrangements with the owing client Gauteng Department of Health departments. In April 2018, the Gauteng Department of Health (GDoH) submitted a written payment commitment for an outstanding balance of R111 million as of 31 March 2018. The commitment was structured as follows:

• 1st instalment: May 2018 – R25 million • 2nd instalment: May 2019 – R25 million • 3rd and final instalment: May 2020 – R61 million

In addition to the arrangement of R111 million owed as of 31 March 2018, The GDoH committed to pay the current monthly invoices within 30 days from the date of receipt. The GDoH owes the Entity an amount of R78,603,225.01 as of 31 March 2020.

The COCID-19 pandemic has been identified as a risk that is likely to negatively impact the revenue collection prospects of the Entity, however, the Entity is still expecting the last tranche payment of R64,389 million from the GDoH in line with the submitted payment plan.

The Department of International Relations and Cooperation On the 3rd March 2020, the Entity received an additional settlement agreement from the Department of International Relations and Cooperation (DIRCO) to settle the amount of R2,907,810.40 on or before 31 March 2020. The said amount was duly paid in March 2020, leading to the upliftment of the temporary suspension on fuel cards.

The Entity considers all settlement proposals or plans on an individual basis, and such plans are monitored monthly.

276 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 277 Reference No Question / Recommendation Department Response 03 The Entity should also provide prog- Organizational Structure ress reports on the concerns raised The GDRT appointed service provider in January 2020 to review and re-align the organisational structure. by the committee on the site visit in This process will ensure that the organisational structure is aligned to the 2021-2025 Strategic Plan. The the Durban Regional office. Regional Offices are very strategic for the Entity to meet customer needs, maintain their customers, and grow its business. One of the Entity’s current strengths is the footprint it has in other provinces. The new Service Delivery Model and Business Case will also ensure that the Regional Offices are strengthened and ICT is optimally utilised. Furthermore, in improving the state of the Regional Offices, the following key activities will be implemented by the Entity: • Automate online bookings (online); • Automate chauffeur driver scheduling; • Improve reporting (by business unit and by region); • Quarterly face-to-face meetings with management; • Monthly meetings (Microsoft teams) and • Supervisor/lead worker in each region.

• Automation and digitisation - systems are the core of the Entity’s operational strategy. It is only through the aggressive adoption of new technologies that the Entity will move from one spectrum to the other. Systems include automation, digitization, and internal controls.

• Training and development – developing a high-performance culture to maintain excellence in operations. Human Capital Development includes aligning organisational structure strategy, training, and development of employees to ensure levels of high performance.

Staffing issues The Entity, including the Head Office and Regional Offices, has currently a twenty-five percent (25%) vacancy rate. Due to a moratorium issued GDRT in 2019, the Entity was unable to fill the vacant posts. A request to the Member of the Executive Council for GDRT has since been made by the Entity to fill the critical vacant posts. The Entity is in the process of consulting Labour regarding the filling of the proposed critical posts. In addition, from time to time temporary arrangements wherein officials from the Head Office are deployed to Regional Offices when the regional officials are on leave and the officials are also afforded opportunity to attend training programmes as and when identified.

Cleaning services Concerning cleaning services, a service provider has been appointed and already on site.

Employee Self Service (ESS) Regarding access to the Employee Self Service (ESS) System, the ESS module was installed for all provincial offices and provincial officials were trained on how to utilise ESS. However, from time to time access problems are experienced by offices especially outside the Gauteng Province.

276 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 277 Responses to House Resolutions on the Annual Report of g-FleeT Management for the 2018/19 Financial Year.

Reference No Question / Recommendation Department Response 01 Measures in place to ensure service The Entity will continue to conduct monthly reviews on performance information to ensure annual perfor- delivery targets are achieved as mance targets are attained at year-end. Furthermore, oversight is provided by the Gauteng Department of planned in g-FleeT Management. Roads and Transport (GDRT) through the Monitoring and Evaluation unit. The Entity has submitted a new request for approval for the advertising, shortlisting, and interviews of critical and funded posts to the Department. This will ensure that projects are implemented on time and the review processes are not compromised. The Entity led by GDRT is currently in a process of reviewing the organisational structure. This process is envisaged to be finalised in August 2020.

02 Measures in place to ensure that Due to unforeseen circumstances, the Entity had to reduce its allocated budget by R109.053 million. the Department will be able to curb underspending of its allocated The Entity acquires its vehicles through the RT57 transversal contract which is administered by National budget in line with planned service Treasury. The issuing of this contract was delayed as it was only awarded in October 2019. Due to the unavail- delivery targets. ability of this contract, the Entity could not purchase vehicles and had to reduce the budget for the acquisition of vehicles by R94.553 million.

The allocated budget for compensation of employees had initially accounted for the critical posts that were advertised in April 2019. However, a moratorium on these posts was issued which resulted in the reduction of the budget by about R14 million.

Spending patterns are monitored on monthly basis and with the above-mentioned adjustments, the Entity does not foresee any material underspending of the revised allocated budget.

08 The Department should provide The Entity is implementing the Debtors Management policy progressively and on a monthly basis. The overall the Committee with the progress debt has marginally reduced to R208,223,630 as of 31 December 2019. This is a slight reduction from the made in the implementation plan, reported figure of R214,937,115 at the end of the last financial year. and progress thereof, to address To date, the Entity has billed and collected R650.796 million and R657.510 million respectively. These two Emphasis of Matter as reflected by figures demonstrate that the debt collection challenges are not with the current charges but the opening the Auditor-General audit opinion. balances. Emphasis of Matters Gauteng Department of Health (GDoH) owes a total amount of R91.401 million which constitutes 43.90% Paragraph 7, P320 – Material of the overall debt book. GDoH has submitted a payment plan requesting to pay the opening balance of the Impairment read with Note 8, p348 debt over twenty-four months, whilst paying the current charges within thirty days. The compliance with this Receivables from exchange trans- payment plan is monitored on monthly basis. actions balance were significantly Furthermore, the Entity has sent letters of demand to the following client departments: impaired. The impairment provision • Department of International Relations and Cooperation, of receivables amounted to R57 • uMgungundlovu District Municipality, and 063 000 (2018: R51 221 000), which • South African National Defence Force represents 20% (2018: 17%) of the • Failure by these client departments to settle their outstanding balances will lead to the temporary suspen- total balance. sion of petrol cards. A total amount of R47,023,656.26 has been identified for write off, this amount is part of the R57,063,000 that was reported as “Impairment provision of receivables in 2018/19 financial year, the approval for the write-offs is expected to be finalised by end of March 2020, to ensure the accounts receivable balance is not overstated.

278 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 279 Responses to the Committee’s Questions on the Annual Report for the 2018/19 Financial Year

Reference No Question / Recommendation Department Response 10 The Entity should highlight the The cause of the 8% over expenditure in the Permanent Fleet was as a result of late deliveries of new vehi- cause of the 8% over expenditure in cles that were ordered in the prior year but delivered in the year under review. the Permanent Fleet. 11 The Entity should explain the Below are the challenges that prompted AGSA to conclude on the limited/no assurance in the senior manage- challenges that prompted the AG to ment and some assurance in the Accounting Officer. conclude on the limited/no assurance in the Senior Management and some assurance in the Accounting Officer.

12 The Entity should provide details of Below is the breakdown of the irregular expenditure incurred in the 2018/19 financial year and reasons an irregular expenditure amounting thereof. to R3 533 000, and further explanation as to why expired contracts were used and whether new contracts have been appointed.

13 The Entity should also explain why The audited opening balance of the fruitless and wasteful expenditure for the 2018/19 financial year was the Accounting Officer wrote off the R19.077 million which is the accumulated balance from the 2010/11 financial year. fruitless and wasteful expenditure without an investigation. Due to the staff turnover in g-FleeT Management particularly within the finance section, records including supplementary lead schedules to support financial statements were not always kept at the central repository or in line with the National Archives and Records Service Act. In that respect, a total amount of fruitless and wasteful expenditure of R16.902 million did not have detailed supporting documents to determine who was responsible in law, for the incurred fruitless and wasteful expenditure, other than the summary on the face of the Annual Report.

As a result of limitations in terms of the available financial record in a form of fruitless and wasteful registers, the Entity could only furnish the investigators with records amounting to R2.175 million. Based on the internal analysis of the fruitless and wasteful expenditure incurred from the 2010/11 financial year, in the main, it was related to “Interest charged on overdue accounts”.

Similarly, the financial records amounting to R2.175 million furnished for investigation purposes were mainly related to interest charged on overdue accounts by Standard Bank. Therefore, the root causes of the transactions relating to the remaining balance of R16.902 million were identical and the unavailability of the financial records meant that the Entity could not find the liable person in law. It was for this reason the entire fruitless and wasteful expenditure balance was recommended for write off and duly approved by the Accounting Officer.

In the 2018/19 financial year, no fruitless and wasteful expenditure was incurred by the Entity, this is further attestation that management of the Entity has put the necessary internal controls to avoid instances of fruitless and wasteful expenditure whilst optimizing the procure to pay cycle.

278 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 279 Challenges that prompted AGSA to conclude on the limited/no assurance in the senior management and some assurance in the Accounting Officer:

No Challenge Root Causes Progress 1 Material misstatement The audit process revealed deficiencies in the reviewing process on The Entity has developed action plans to address on the submitted Commitments and Property, Plant, and Equipment. The Entity acknowledged auditing findings. These action plans are moni- financial statements these deficiencies and has prepared a plan to ensure there is no reoccurrence tored on monthly basis. of material misstatements. The objective is to improve the internal control environment with the express aim of attaining a clean administration.

2 Material misstate- Whilst, there is a noticeable improvement in the audit of predetermined The Annual Performance Plan for 2019/20 will be ments on the annual objectives in that Programme 1, (Operational management service) was for revised during November 2019, to ensure consis- performance report. the first time unqualified, the Entity acknowledges there is a lot of work and tency between the planned indicator and target. interventions required to improve the overall performance. The RT46 Service Provider has conducted a The material findings were on the following two key performance indicators: merchant audit to clean up Township Business Merchants and outlined the criteria in classifying Annual Tariff structure submitted to Treasury for approval township businesses.

Inconsistences between the key performance indicator and target

Percentage of maintenance expenditure on Gauteng Township Businesses (Automotive)

The performance indicator to determine or report on “Percentage of maintenance expenditure on Gauteng Township Business (Automotive)” is dependent on the reports from the RT 46 service provider, during the year under review the Entity and AGSA could not obtain sufficient audit evidence on the achievement of 4%. The Entity has since implemented punitive measures in a form of non-payment (administrative fees) for instances where a portfolio of evidence in a form of reports could not be furnished.

3 Material findings on Expenditure Management The Entity has concluded procurement processes compliance with laws The Entity incurred irregular expenditure amounting to R3,553,000 due to the for new office accommodation for KZN, Cape and regulations. extension of expired contracts for security services, office accommodation, Town, and Eastern Cape Regional Offices. and cleaning. The auditors were not happy with the process followed to write off fruitless No fruitless and wasteful expenditure incurred by and wasteful expenditure incurred by the Entity. the Entity during the 2018/19 financial year.

280 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 281 7. STANDING COMMITTEE ON PUBLIC ACCOUNTS (SCOPA) RESOLUTIONS Resolved (Yes/No) Ongoing Ongoing Yes Yes Yes Ongoing Yes. Ongoing Yes. Response by the department to advertise critical posts has identified and a submission requesting were All critical positions within the organisation by the Member of Executive Council. The posts will be advertised and filled end quarter 4 been approved the Entity. from With effective monthly. being implemented and monitored are Operating Procedures Standard All approved of compiling monthly financial statements as part month-end the process November 2017, the Entity has introduced procedures. the quality of aimed at improving engagements with the appointed service provider have been numerous There portfolio of evidence (POE) for achieved performance information, this includes both formal and informal communica- SA as part of planned interim tions. Information for Q1 and Q2 has been given to Internal Audit and Auditor-General audits. planned to start in mid-February 2018 and the internal audit team started auditing the perfor- The interim audits were mance information in January 2018. these institutions will give an independent assessment that assist the Entity in identifying areas Feedback from attention. that still require Treasury. by Gauteng Provincial reviewed Both Q1 and Q2 financial statements were to monthly process to extend its reviewing has also agreed Treasury engagements, the Gauteng Provincial Through January 2018. from interim financials effective and GRAP training is attended on an annual basis to enhance technical skills and understanding of applicable standards Treasury. the Gauteng Provincial 2018 through is planned to take place in March expenditure investigating all instances of irregular The Departmental Ethics, Anti-Fraud, and Corruption unit is currently action will be taken upon the finalisation of investigation process. until 30 September 2017. Corrective incurred and Accounts payable has been fully implemented. for Purchases Operating Procedure The Standard sub- the members of middle management within Entity were As part of a continuous skills development process, jected to Bid Committee training during November 2017. investigating all instances of fruitless and wasteful The Departmental Ethics, Anti-Fraud and Corruption unit is currently action will be taken upon the finalisation of investigation until 30 September 2017. Corrective incurred expenditure process. is being Operating Procedure and Accounts Payable Standard SAP has been fully implemented and the Purchase continuously implemented. their invoices. within 30 days after receiving Q2, the Entity paid all their service providers from With effect is being Operating Procedure and Accounts Payable Standard SAP has been fully implemented and the Purchase continuously implemented. their invoices. within 30 days after receiving Q2, the Entity paid all their service providers from With effect effectiveness of measures put in place to curb the recurrence of errors in of errors put in place to curb the recurrence of measures effectiveness and thereafter the financial statements within 30 days after adoption hereof every quarter continuing up until the end of June 2018. weaknesses in put in place to address of measures the effectiveness every objectives, within 30 days after adoption and thereafter predetermined quarter continuing up until the end of June 2018 ac- the financial statements to ensure findings as well adequately review the Committee information and provide curacy and completeness of reported of the action plans within detailing the effectiveness report with a progress every quarter continuing up until and thereafter 30 days after adoption hereof the end of June 2018. the committee and provides expenditure es to eliminate findings on irregular put in place of measure detailing the effectiveness report with a progress within 30 days of expenditure to irregular challenges relating to address every quarter continuing up until the end of and thereafter adoption hereof June 2018. as well to eliminate findings on fruit- the implicated officials funds from the Committee with a progress and provides less and wasteful expenditure these put in place to address of measures detailing the effectiveness report every quarter and thereafter challenges within 30 days of adoption hereof continuing up until the end of June 2018. es to eliminate findings on non-compliance with key legislation and provides of measures detailing the effectiveness report the committee with a progress to payment of service providers challenges related put in place to address every quarter continuing up and thereafter within 30 days of adoption hereof until the end of June 2018. the committee with action plans and honouring commitments provides put in place of measures detailing the effectiveness report a progress within 30 days of adoption hereof payment of service providers addressing every quarter up until the end of June 2018. and thereafter Resolu- tion No. Subject 4.1.1.2 detailing the report the Committee with a progress That the MEC provides 4.2.1.2 detailing report the committee with a progress That the department provides 4.3.1.2 audit That the Entity develops and implements an action plan to address 4.3.2.1.2 That the CEO intensify performance and consequence management process- 4.3.2.2.2 implement consequence management to recover That the Accounting Officer 4.3.2.3.2 That the MEC intensify performance and consequence management process- 4.3.2.3.2 That the MEC hold CEO accountable for timely implementation of

280 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 281 282 Resolution No. Subject Response by the department Resolved (Yes/No) 4.4.1.1 That the MEC provides the Committee with a progress report detailing the Management team meets every week to report on progress in terms of their key performance areas. Ongoing effectiveness of measures put in place to address poor leadership in the Department within 30 days of adoption hereof and thereafter every quarter These meetings are designed to strengthen stewardship and accountability. Such forums also provide the Executive with GAUTENG PROVINCIAL GOVERNMENT | continuing up until the end of June 2018. a bird’s eye view of the state of affairs on both financial and performance management.

4.5.1.1 That the department provides the committee with a progress report detailing Investigations around lost vehicles are on-going and have not yet concluded. Yes the status of the investigations within 30 days of adoption hereof and thereafter every quarter continuing up until the end of June 2018.

6.1 The Entity must implement its Debtors Management policy fully and provide The Entity is implementing the Debtors Management Policy on monthly basis. The overall debt book is R190.979 million Yes the Committee with a progress report detailing the effectiveness of the policy as of 31 March 2020. The projected billing for March 2020 is an estimate based on February 2020 invoices, the final run every quarter and continuing until the end of June 2020. for March 2020 will be on the 13th of April 2020. The indicative figures suggest that the overall debtor’s book will be R23.958 million less in contrast to the R214.937 million reported on the same period in 2018/19 financial year.

DEPARTMENT OFROADSANDTRANSPORT To date, the Entity has billed and collected R859.921 million and R864.440 million respectively. These two figures demonstrate that the debt collection challenges are not with the current charges but are with the opening balances. The Gauteng Department of Health (GDoH) owes the Entity a total amount of R91.401 million which constitutes 41% of the overall debt book. GDoH has submitted a payment plan requesting to pay the opening balance of the debt over a period on twenty-four (24) months, whilst paying the current charges within thirty (30) days. The compliance with this payment plan is monitored on monthly basis. The abovementioned 24 months is expiring on the 31st May 2020, therefore this account is expected to be up to date.

Following the letters of demand sent to the Department of International Relation and Cooperation and uMgungundlovu District Municipality in the third quarter, the Entity received payments of R2.908 million and R7.711 million from the two client departments, respectively. South African National Defence Force has not paid but has formally written to the Entity requesting supporting documents for the outstanding claims. The Entity is working closely with the client department in an attempt to furnish the requested information, however, the account remains suspended.

The amount of R40,447,006.93 had been referred to the Accounting Officer to write off as irrecoverable. This amount is part of the R57,063,000 that was reported as “Impairment for provision of receivables” in the 2018/19 financial year. The Entity awaits the approval from the Accounting Officer in this regard. As much as these debts are likely to be written off, to ensure the debtor’s book is not overstated, the Entity will continue to pursue client departments to pay their outstanding balances. GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 283 282 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

Resolved (Yes/ Resolution No. Subject Response by the department No) 6.2 The Entity must implement adequate processes to review the annual perfor- The Process to review the annual performance plan & annual performance report Yes (Ongoing) mance plan and annual performance report and provide the Committee with a progress report detailing the effectiveness of the processes to review the i) The Entity conducts reviews of its Annual Performance Plans (APP) with its Senior Management Team (SMT) during annual performance plan and annual performance report every quarter and the APP drafting and finalising process. continuing until the end of June 2020. ii) Further oversight is provided by the Gauteng Department of Roads and Transport(GDRT) as APPs are submitted to the Head of Department and the Member of the Executive Council for approval. iii) The Office of the Premier and the Department of Planning, Monitoring and Evaluation also conduct reviews of the APP and their feedback is incorporated into the final APP. These processes help to ensure that there is alignment to the provincial and departmental priorities. iv) The Quarterly Performance Report is firstly reviewed by the various directorates to verify the reported performance against supporting documentation. v) The second level of the reviews is undertaken by SMT to validate performance reports. vi) The third level is the validation of reported performance against the supporting Portfolio of Evidence undertaken by the Offices of the Chief Financial Officer, Office of the Chief Operations Officer and Office of the Chief Executive Officer to ensure effective reviews of the Quarterly Performance Report prior submission to the Office of Head of Department for approval. vii) The Entity is provided with oversight from the GDRT as per requirements from the National Monitoring and Evalua- tion Frameworks and this oversight is conducted on a quarterly and annual basis. viii) The GDRT analyzes quarterly performance and provides required advice on performance planning (i.e. Strategic Plan and Annual Performance Plan) and monitoring (Quarterly and Annual Reports). ix) The Internal audit review on the performance of the Entity against the pre-determined objectives is conducted. In addition, the internal auditors have provided reviews and assurance on the Draft APP for the 2020/21 financial year and Draft 2021-2025 Strategic Plan. GAUTENG PROVINCIAL GOVERNMENT | x) Recommendations on reviews by internal auditors on performance information have been implemented in the 2019/2020 financial year quarterly reviews. xi) Recommendations on reviews by internal auditors, Office of the Premier and DRT’s Monitoring and Evaluation Unit have been implemented in the Draft 2021-2021 Strategic and Draft APP for the 2020/2021 financial year. xii) The result, therefore, is that more and more errors are determined and corrected through these internal structures. 6.3 The Entity must develop and implement processes to verify the complete- The Entity has developed and is implementing the following processes to ensure the completeness and accuracy of the Yes (Ongoing) ness and accuracy of the reported performance information and provide the reported performance information: Committee with a progress report detailing the effectiveness of measures put in place to verify the completeness and accuracy of the reported performance 1. The various directorates themselves verify the reported information against supporting documentation. information every quarter and continuing until the end of June 2020. 2. The review is undertaken by SMT where reported information is reviewed and

DEPARTMENT OFROADSANDTRANSPORT 3. The Office of the Chief Financial Officer and Office of the Chief Executive Officer conducts the validation of performance reported against supporting documentation.

4. The GDRT also provides oversight on a quarterly and annual basis.

In addition, all senior managers are currently reviewing the annual Portfolio of Evidence for all Key Performance Indica- tors. This information will be incorporated as part of the Annual Performance Report. 6.4 The Entity must provide the Committee with a progress report detailing the The Entity is provided with oversight from the GDRT as per requirements from the National Monitoring and Evaluation Yes (Ongoing) status of the request to the Department of Roads and Transport, Monitoring Frameworks and this oversight is conducted on a quarterly and annual basis. The GDRT analyzes quarterly performance and Evaluation Directorate to play an oversight and advisory role in the devel- and provides required advice on performance planning (i.e. Strategic Plan and Annual Performance Plan) and monitoring opment of Strategic and Annual Performance Plans every quarter and up until (Quarterly and Annual Reports). the end of June 2020. 283 284 Resolved (Yes/ Resolution No. Subject Response by the department No) 6.5 The Entity must implement a document management system to safeguard The request for deviation done by the Gauteng Department of Roads and Transport’s Chief Information Officer was No (Ongoing) and allow for speedy retrieval of information when required and provide the declined by the Gauteng Provincial Treasury(GPT) for the eDRMS Project. The project was scaled down, presented to the GAUTENG PROVINCIAL GOVERNMENT | Committee with a progress report every quarter and continuing up until the Departmental Bid Acquisition Committee(BAC) on 25 February 2020 and approval was granted by BAC on 28 February end of June 2020. 2020. The department is in the process of contracting with the service provider. It is anticipated that the project will be completed and the e-DRMS will be fully functional by end of March 2021.

6.6 The Entity must implement adequate controls to identify and report on The Entity is pleased to report to the Committee that no fruitless and wasteful expenditure has been incurred and Yes fruitless and wasteful expenditure, intensify performance and consequence reported in 2019/20 financial year. This is a consolidation of the internal controls and systems put in place by manage- management processes to mitigate instances of findings on fruitless and ment in the past two (02) financial years to completely eradicate wastage within the Entity and restore sound financial wasteful expenditure and provide the Committee with a detailed report management. detailing the effectiveness of the controls every quarter and continuing up until the end of June 2020 DEPARTMENT OFROADSANDTRANSPORT

6.7 The Entity must implement appropriate controls around SCM to ensure Intensive efforts and internal controls are being implemented by the Entity in a quest to promote good governance and No (Ongoing) compliance with relevant legislation and to prevent irregular expenditure compliance with the laws and regulations, however, there are legacy issues that are being systematically addressed to and provide the Committee with a progress report detailing the effectiveness ensure that the Entity does not relapse in the future. of measures put in place every quarter and continuing until the end of June 2020. Detailed analysis and progress report included in an Annexure.

6.8 The Entity must provide the Committee with a progress report detailing the The GDRT appointed an external service provider early in 2020 to review and realignment organizational structure No (Ongoing) status of the review of the organisational structure every quarter continuing for both GPDRT and g-FleeT. The department has indicated that the process will take at least twelve (12) months to up until finalisation thereof. complete and not eight (08) months as initially anticipated. GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 285 284 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

Resolution No. Subject Response by the department Resolved (Yes/No) 6.9 The Entity must provide the Committee with a progress report detailing Financial Reporting No (Ongoing) the effectiveness of the various levels of oversight measures instituted to address leadership, financial and performance management challenges every quarter and continuing up until the end of June 2020. (i) With regards to financial reporting, monthly reconciliation procedures are done on monthly basis in line with the approved Standard Operating Procedures. (ii) The first, second and quarterly Interim Financial Statements were prepared, reviewed and submitted to Gauteng Provincial Treasury and Audit Committee. (iii) The Gauteng Provincial Treasury still assists with the reviewing process of the Financial Statements before final submission. (iv) The Revenue Analysis has been performed from 01 April 2019 to 31 December 2019 to ensure that the reported figures on both revenue and account receivables are free from material misstatements. The Entity is currently in a process of finalising the last quarter analytics. (v) The total fleet of operational vehicles at g-FleeT Management is 6,289. 5,548 (88%) of the total fleet of vehicles has been physically verified and confirmed by client departments with corroborating Portfolio of Evidence as of 19 March 2020. Due to the COVID-19 pandemic and lockdown, as declared by the President, the Entity could not finalise the physical verification of 741 vehicles, as an alternative procedure signed confirmation letters will be solicited from various client departments to ensure all vehicles are properly accounted for in the asset register. (vi) The Entity has prepared action plans for all areas of concern that were raised by the Auditor General of South Africa last financial year. Furthermore, the Entity has developed a checklist that will guide and assist in the preparation and reviewing of Financial Statements, with a special focus on the following key disclosures:

1. Property, Plant and Equipment (GRAP 17); 2. Financial Instruments (GRAP 104); and GAUTENG PROVINCIAL GOVERNMENT | 3. Leases (GRAP 13).

(vii) A refresher training on GRAP was undertaken in February 2020 by the two officials responsible for the preparation and reviewing of Financial Statements.

Performance Management

In relation to the audit finding on the “Tariff structure indicator not consistent with the related target”.

The Entity has revised the Annual Performance Plan for the 2019/20 financial year to ensure that there is congruence between the Key Performance Indicator and Target. They both read “Annual Tariff structure for 2020/21 submitted to Provincial Treasury for approval” DEPARTMENT OFROADSANDTRANSPORT The first, second and third quarterly performance reports and Portfolio of Evidence were submitted to the GDRT. Numerous meetings were held with the RT46 service provider to perform a data clean up especially on township merchants to ensure that credible information is provided on a monthly and quarterly basis.

Compliance with laws and regulations

The Entity is continuing on a positive trajectory in terms of ensuring compliance with laws and regulations: - 1. No fruitless and wasteful expenditure has been incurred and reported in the 2019/20 financial year. 2. The Entity is constantly improving on paying service providers within the prescribed 30 days and the compliance rate for the fourth quarter (Q4) is 98%. 3. The amount of irregular expenditure incurred is sitting at R11,721,000 million, as at 26 March 2020. Through the procurement process, new Landlords have been appointed for office accommodation in the KwaZulu-Natal and Cape Town Regional Offices and the Comprehensive Vehicle Tracking Tender was awarded in July 2019 and the contract was concluded on 20 December 2019. 285 8. PRIOR MODIFICATION TO AUDIT REPORTS

Nature of qualification, disclaimer, adverse opin- The financial year in Progress made in clearing / resolving the matter ion and matters of non-compliance which it first arose Irregular Expenditure (Non-compliance with PFMA and 2014/15 All irregular expenditure transactions are being investigated. The investigation procurement processes.) report and memo to condone irregular expenditure has been sent to the Gauteng Provincial Treasury for consideration and approval.

The Entity has put necessary internal controls to curb/eradicate irregular expenditure.

Fruitless and wasteful expenditure (Non-compliance 2014/15 No fruitless and wasteful expenditure was incurred by the Entity in 2018/19 and with PFMA) 2019/20 financial year.

Contractual obligations and money owed by the Entity 2014/15 The Entity has achieved 96% compliance rate in terms of paying services were not settled within 30 days (Non-compliance with providers with the prescribed 30 days’ period in terms of the PFMA and TR, this PFMA) signifies a 2% increase from 2018/19 financial year.

The Entity will continue to implement measures aimed at achieving 100% compliance rate.

SAP has been fully implemented and the Purchases and Accounts Payable Stan- dard Operating Procedure is being continuously implemented.

286 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 287 9. INTERNAL CONTROL UNIT

The Accounting Officer through monitoring and management of the Drivers of Internal Control ensures that set control objectives have the required control mechanisms and activities in place that will monitor and evaluate controls. The Accounting Officer continually assess and evaluate internal control to assure that the control activities in place are effective, efficient and transparent and updated when necessary. The Auditor-General also conducts an assessment on the Drivers of Internal Control of the entity and the recommendations are taken into consider- ations when improvements of the control weakness are put in place.

Through strategic risk and operational risk assessments, control weaknesses and control gaps are identified and strengthened and new action plans put in place.

The internal audit section from Gauteng Audit Services performs reviews on g-FleeT processes and through the audit findings and audit recommendations the identified inadequate controls or lack of controls are strengthened or developed and new effective and efficient ones put in place.

286 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 287 10. AUDIT COMMITTEE REPORT The Audit Committee is satisfied that the Entity adhered to the provisions GAUTENG PROVINCIAL GOVERNMENT (GPG) of the GPG Audit Committee Charter. Report of the Audit Committee – Cluster 04 The members of the audit committee held meetings with the accounting g-FleeT Management Agency officer, senior management of the department or public entity, internal We are pleased to present our report for the financial year ended 31 audit function and the Auditor-General of South Africa (AGSA) collective- March 2020. ly and individually, on matters related to governance, internal control and risk in the department, throughout the reporting period. The Chairperson Audit Committee and Attendance also held a meeting with the honourable member of the executive com- The Audit Committee consists of the external Members listed hereunder mittee Mr J Mamabolo to report on governance, internal control, risk, and is required to meet a minimum of at least two times per annum as performance and financial information and other relevant matters con- per provisions of the Public Finance Management Act (PFMA). In terms cerning the department. of the approved Terms of Reference (GPG Audit Committee Charter), five meetings were held during the current year, i.e. three meetings to consid- Audit Committee Responsibility er the Quarterly Performance Reporting (financial and non-financial) and The Audit Committee reports that it has complied with its responsibilities two meetings to review and discuss the Annual Financial Statements arising from section 38(1)(a) of the PFMA and Treasury Regulation 3.1. and the Auditor-General of South Africa’s (AGSA) Audit and Management The Audit Committee also reports that it has adopted appropriate formal Reports. terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with this Charter Non-Executive Members and has discharged all its responsibilities as contained therein.

Name of member Number of meetings attended Events after the reporting date Mr. Stanley Ngobeni (Chairperson) 04 (Appointed 01 March 2018) The Covid19 pandemic impacted on the audit committee’s operations after the financial year-end of 31 March 2020. Social distancing, lockdown Mr. Vishnu Naicker (Chairperson) 01 (Appointed 11 August 2020) regulations together with the amended legislative timeframes for annual Mr. George Higgins 05 (Appointed 01 September 2016) report submission impacted the operations of the audit committee, internal audit and external audit on the timeframes when annual financial Ms. Given Sibiya 04 (Appointed 01 March 2018} Term expired statements and annual performance information would be prepared by Ms. Mmathebe Moja 01 (Appointed 11 August 2020) the departments, desk reviewed by the Office of the Provincial Accoun- tant-General and audited by the AGSA.

The audit committee welcomed initiatives by the trading entity, internal Executive Members audit, external audit and audit committee members assisted by Gauteng In terms of the GPG Audit Committee Charter, officials listed hereunder Provincial Treasury to go digital to continue with the compilation of the are obliged to attend meetings of the Audit Committee: annual report, desk reviews, audit processes and oversight responsibilities. Compulsory Attendees Number of meetings attended

Mr Noxolo Maninjwa (Chief Executive Officer) 05 Events after the reporting date The Covid19 pandemic impacted on the audit committee’s operations af- Mr Mbasa A. Ngumla (Acting Chief Financial Officer) 05 ter the financial year-end of 31 March 2020. Social distancing, lockdown regulations together with the amended legislative timeframes for annual Mr Solomon Kodisang (Former Chief Risk Officer) 02 report submission impacted the operations of the audit committee, in- MsDelicia Kgage (Acting Chief Risk Officer) 02 ternal audit and external audit on the timeframes when annual financial statements and annual performance information would be prepared by Mr. Kweyama Velile (Chief Audit Executive) 05 the departments, desk reviewed by the Office of the Provincial Accoun- tant-General and audited by the AGSA.

288 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 289 The audit committee welcomed initiatives by the trading entity, internal hours and time-frames. The Audit Committee is satisfied that the Internal audit, external audit and audit committee members assisted by Gauteng Audit plan represents a clear alignment with the key risks, has adequate Provincial Treasury to go digital to continue with the compilation of the information systems coverage, and a good balance across the different annual report, desk reviews, audit processes and oversight responsibil- categories of audits, i.e. risk-based, mandatory, performance, computer ities. and follow-up audits.

The effectiveness of internal control The coordination of efforts between internal audit and AGSA has been The audit committee acknowledges management’s efforts to strength- enhanced further during the year in the provision of assurance services. en internal controls in the Department. From the various reports of the The Committee believes this is an important step towards a fully effec- internal auditors, management and audit reports of the Auditor General tive combined assurance system. of South Africa, it was noted that matters were reported indicating deficiencies in the system of internal controls in areas pertaining to financial It was noted that a Quality Assurance Review (external assessment) was reporting, asset management, reporting on pre-determined objectives performed by an external independent reviewer during the year and In- and compliance with laws and regulations and in some cases resulted ternal Audit was assessed to be Generally Conformant with the Interna- on repeat findings. tional Standards for Professional Practice of Internal Auditing.

In some instances, the system on internal control for the period under The Audit Committee will continue to monitor the capacity and the re- review was found to be adequate but ineffective and their’s room for sources allocated to the Internal Audit function. improvement in so far as addressing internal audit findings timeously and implementation of consequence management. Some of the issues/con- Risk Management cerns raised by Internal Audit during the year were raised by the AGSA, The Audit Committee is responsible for the oversight of the risk manage- The Audit Committee is of the view that management should continue ment function. The risk management committee reports to the audit com- strengthening the internal control environment with the development and mittee on the entity’s management of risk. The committee has reviewed implementation of systems across the internal control universe. Manage- the risk register and the reports from the risk committee and is generally ment should also improve its financial reporting controls to ensure that satisfied with the maturity level of the risk management process, how- risks of material misstatement to the financial statements are minimised. ever, improvements to processes and policies to address the key risk exposures to the Department is still required. Information and Communication Technology (ICT) Governance The entity made some progress in implementing the recommendations Management should continue to take full responsibility for the entire from 2018/19. Enterprise Risk Management Process and continue to support the Chief Risk Officer to even further enhance the performance of the Entity in- The Audit Committee notes the Auditor- General and Internal Audit re- cluding the appointment of an independent Risk Management Commit- ports around ICT governance and business continuity. The Department tee Chairperson. The Audit Committee would like to see the continued has been instructed to ensure that significant attention is allocated to improvement in the maturity of risk management. resolving these deficiencies in the next financial year. The implementation of an effective fleet system should enable better management and Performance Management more effective use of the fleet. The review of effectiveness and functionality of the performance management system (which includes analysis of management prepared Internal Audit quarterly performance reports and related internal audit reports) by Audit The Accounting Officer is obliged, in terms of the PFMA, to ensure that Committee revealed a need to strengthen current performance manage- the Entity has a system of internal audit under the control and direction of ment and reporting system. the Audit Committee. In the case of the Gauteng Provincial Government (GPG), the Internal Audit Function is shared amongst Entities and depart- The Audit Committee notes that the AGSA has raised a finding on the ments in the Province. usefulness of a Key performance indicator and has requested that management together with the AGSA find a sustainable solution in terms of The Internal Audit team managed to execute and complete substantial the wording and evidence required to support the KPIs. original approved risk-based audit projects within the allocated budget

288 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 289 The quality of quarterly reports submitted in terms of the PFMA ing policies and practices. and the Division of Revenue Act » Compliance with Standards of GRAP and the PFMA The Audit Committee reviewed the quality, accuracy, uselessness, reli- requirements. ability and appropriateness of quarterly and annual financial reporting » Significant adjustments and/or unadjusted differences and the Audit Committee is satisfied with the content and quality of fi- resulting from the audit. nancial and non-financial quarterly reports prepared and submitted by » Reflection of unusual circumstances or events and the Accounting Officer of the Entity during the year under review and management’s explanation for the accounting treatment confirms that the reports complied with the statutory reporting frame- adopted. work. The Audit Committee would like to commend the Entity for report- » Reasons for budget variations ing monthly and quarterly to Treasury as is required by the PFMA. The » Reasons for major year-on-year fluctuations. Audit Committee recommends that the Entity should ensure better com- » Asset valuations and revaluations. pliance with section 40(1) of the PFMA, in so far as management’s review » Calculation and levels of general and specific provisions. and monitoring of financial reports and performance information reports. » Write-offs and reserve transfers. » The basis for the going concern assumption, including any Compliance with the relevant laws and regulations financial sustainability risks and issues. A number of non-compliance with the enabling laws and regulations were noted by the Audit Committee, Management, Internal Audit and • Reviewed the Audit Report of the AGSA; AGSA during the year. As result, the Audit Committee recommended the development and implementation of an effective compliance manage- • Reviewed the AGSA’s Management Report and Management’s ment system with an objective of addressing the issues of non-compli- response thereto. ance with laws and regulations. The Audit Committee concurs with and accepts the AGSA’s conclusions Forensic Investigations on the Annual Financial Statements and is of the opinion that the audit- Investigations into alleged financial irregularities, financial misconduct ed Annual Financial Statements be accepted and read together with the and fraud were completed during the year under review. Certain inves- report of the AGSA. tigations are still in the process of finalisation. Various measures were recommended including taking action against the identified officials and Evaluation of the Annual Report this was in the process of finalisation. The recommendations are at vari- The Audit Committee undertook the following activities related to the ous stages of implementation. annual report:

Evaluation of Annual Financial Statements Audit Committee evaluated the final draft Annual Report (including per- The Audit Committee undertook the following activities related to Annual formance report) the audit committee meeting held on 15 October 2020 Financial Statements: and noted the achievement for the year under review and recommend it. • Audit Committee reviewed the draft annual financial statements prepared by the Entity before the submission of the annual Audit Improvement Plan for 2018/19 financial statements to the external auditors for audit the audit The Audit Committee reviewed and monitored the implementation of committee meeting held on 19 June 2020 and recommended them prior year audit findings on a quarterly basis. It is the view of the Audit for audit. Committee that there is a room for improvement in this regard in so far as timeous implementation and resolving findings by the external auditors • Reviewed and discussed the audited Annual Financial Statements as well as addressing the root-causes relating to the weakness identified to be included in the Annual Report, with the AGSA, the Account- by the external auditors. The Audit Improvement plan for 2019/2020 I will ing Officer and the CEO; be monitored from on a quarterly basis. » Significant financial reporting judgements and estimates contained in the annual financial statements. One-on-One Meeting with the Accounting Officer » Clarity and completeness of disclosures and whether The Audit Committee has met with the Accounting Officer for the Entity disclosures made have been set properly in context. to address unresolved issues. » Quality and acceptability of, and any changes in, account-

290 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 291 One-on-One Meeting with the Accounting Officer of the department The Audit Committee has met with the Accounting Officer for the department to address unresolved issues.

One-on-One Meetings with the Executive Authority The Audit Committee has met with the Executive Authority for the Entity to appraise the MEC on the performance of the Entity.

Conclusion The Audit Committee strongly recommends that the Entity should prioritise root-cause identification and analysis, implementation of consequence management, and regular monitoring of the audit action plans for both internal and external audit to achieve the required effectiveness in governance, accountability and clean administration.

Furthermore, The Audit Committee is encouraged and appreciates an improvement in the communication between the Accounting Officer, the Chief Executive Officer, Senior Management, the AGSA and the Internal Audit which if continued can strengthen the Corporate Governance initiatives within the Entity.

………………………………………… Mr Vishnu Naicker Chairperson of the Audit Committee Johannesburg

16 October 2020

290 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 291 PART D HUMAN RESOURCE MANAGEMENT

292 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 293 1. INTRODUCTION

The Entity has been focusing on ensuring that the work environment is ness and Labour Relations unit. Our staff, the entity’s capital resources’ safe and conducive for employees to perform their duties effectively wellbeing is high on the agenda and through several activities that have and efficiently. The Entity continued to utilise the organogram approved been rolled out to address pertinent areas of concern regarding staff’s in 2014. The process of approving the proposed Service Delivery Mod- holistic health, work environment and a good balance between their per- el, Business Case and the proposed Organisational Structure that was sonal and work life. updated in February 2017 is not yet concluded. Due to the moratorium placed by the Department of Roads and Transport in 2019, the Entity The entity continues to provide staff with a platform to be heard and to could not continue with the recruitment process for the already adver- reach out for assistance through the Employee Assistant Program (EAP). tised posts. There have been roadshows that keep staff informed on their responsibilities to the entity and the responsibilities of the entity to them. Topics A service provider has been appointed by the Department of Roads and such as Pension, Injury on Duty, Occupational Health and Safety, Em- Transport to review and re-align the organisational structures of the ployee Assistance, and Labour Matters are addressed at the roadshows. Department and the Entity. This process is envisaged to be completed Health Screenings have also assisted in giving staff updated information before the end of the 2020/21 financial year. Upon finalisation of the on health matters varying form HIV/AIDs, Cancer, Alcoholism and Mental structure, the Department will submit the proposed structure to the DPSA health etc. through the Office of the Premier. During the financial year under review, Careways continues to be the EAP service provider used by the Gauteng the Entity had 210 officials under its employ. The Entity’s vacancy rate Provincial Departments and through them, we have been able to refer has increased because of resignations and officials going on pension. several staff members that require assistance in several areas. Care- The Entity ensured that all courses attended by officials are Sector Edu- ways, a 24-hour service, provides staff and their immediate family mem- cation and Training Authority accredited. The Entity’s focus was to train bers with confidential support and advice on health and personal issues. as many officials in line with the approved 2019/2020 Training Plan. As Human Resources, we will continue to put our staff in the forefront of our plans and uphold the policies of the entity in collaboration with The Training Plan is based on the agreed training requirements between our staff to increase productivity and boost the morale as we strive for staff members and the supervisors in line with the Performance Man- success in all areas of our organisation. agement System. This approach aims to ensure that trained officials positively contribute to the productivity of the various directorates within the Entity and further gives the staff members an advantage for growth in their chosen area of expertise. The improvement for compliance with Performance Management and Development Systems is encouraging; the new changes to the format have been welcomed by most staff. Con- tinued training on the policies and procedures of the Entity and the De- partment have taken place throughout the financial year.

Employee Health and Wellness Program

The fostering of good labour relations and having staff that are well-informed and nurtured by the organisation has been a priority for the Well-

292 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 293 2. HUMAN RESOURCE OVERSIGHT STATISTICS

2.1. PERSONNEL RELATED EXPENDITURE

The following tables provide a summary of the final audited personnel-related expenditure by programme and salary bands. It indicates the following: • amount spent on personnel • amount spent on salaries, overtime, homeowner’s allowances and medical aid.

TABLE 2.1.1 PERSONNEL EXPENDITURE BY THE PROGRAMME FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Professional Personnel Total Personnel Training and Special Expenditure Average per- Programme Expenditure Expenditure Expenditure Services as a % of sonnel cost per (R’000) (R’000) (R’000) Expenditure total employee (R’000) (R’000) Expenditure Office of the CEO 3 623 3 117 0 0 0% 1 039 Office of the COO 694 684 0 0 0% 684 Office of the CFO 7 434 1 387 0 0 0% 694 Financial services 15 180 14 524 0 0 2% 309 Corporate Services 35 483 11 461 631 0 2% 287 Marketing and Communication 10 862 10 382 0 0 1% 371 Maintenance Services 120 563 9 597 0 0 1% 291 Transport Support Services 231 909 12 158 0 0 2% 329 Permanent Service 265 983 7 212 0 0 1% 380 VIP and Pool Services 18 419 18 147 0 0 3% 330 Total 710 150 88 669 631 0 12% 4 712

TABLE 2.1.2 PERSONNEL COSTS BY SALARY BAND FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Personnel Expen- % of total person- Average personnel cost Salary band No. of employees diture (R’000) nel cost per employee (R’000)

Lower skilled (Levels 1-2) 5 094 6% 57 89 Skilled (level 3-5) 23 784 27% 94 253 Highly skilled production (levels 6-8) 30 372 34% 76 400 Highly skilled supervision (levels 9-12) 22 747 26% 33 689 Senior and Top management (levels 13-16) 6 672 7% 5 1 334 Total 88 669 100% 265 335

294 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 295 TABLE 2.1.3 SALARIES, OVERTIME, HOME OWNERS ALLOWANCE AND MEDICAL AID BY PROGRAMME FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Home Owners Allow- Salaries Overtime Medical Aid ance

Salaries Overtime Medical HOA as Programme as as aid as a a % of Amount a % of Amount a % of Amount Amount % of person- (R’000 person- (R’000) person- (R’000) (R’000) personnel nel nel nel costs costs costs costs

Office of the CEO 3 117 4% 0 0% 17 0% 22 0% Office of the COO 684.00 1% 0 0% 0 0% 60 0% Office of the CFO 1 387 1% 0 0% 43 0% 82 0% Financial Management 14 524 16% 6 0% 416 0% 717 1% Corporate Services 11 461 13% 0 0% 430 1% 574 1% Marketing & Communication 10 382 11% 0 0% 246 0% 425 0% Maintenance Services 9 597 11% 0 0% 285 0% 616 1% Transport Support Services 12 158 14% 62 0% 352 1% 743 1% Permanent Service 7 212 8% 0 0% 218 0% 365 0% VIP/POOL Services 18 147 21% 1 243 2% 775 1% 1 024 1% TOTAL 88 669 100% 1 311 2% 2 782 3% 4 628 5%

TABLE 2.1.4 SALARIES, OVERTIME, HOME OWNERS ALLOWANCE AND MEDICAL AID BY SALARY BAND FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Salary Bands Salaries Overtime Home Owners Allowance Medical Aid

Amount Salaries Amount Overtime Amount HOA as Amount Medical aid as (R’000 as (R’000) as (R’000) a % of (R’000) a % of a % of a % of personnel personnel personnel personnel costs costs costs costs

Skilled (level 1-2) 5 094 6% 33 0% 33 0% 18 0%

Skilled (level 3-5) 23 784 27% 964 1% 1 252 1% 1 832 2%

Highly skilled 30 372 34% 282 0% 813 1% 2 093 2% production (levels 6-8) Highly skilled 22 747 26% 32 0% 561 1% 594 1% supervision (levels 9-12 Senior management 6 672 7% 0 0% 123 0% 91 0% (level 13-16)

Total 88 669 100% 1 311 1% 2 782 3% 4 628 5%

294 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 295 2.2. EMPLOYMENT AND VACANCIES

The tables in this section summarise the position of the entity with regards to employment and vacancies.

The following tables summarise the number of posts in the establishment, the number of employees, the vacancy rate, and whether added any employees that are additional to the establishment.

This information is presented in terms of three key variables: • programme • salary band • critical occupations

Departments have identified critical occupations that need to be monitored. In terms of current regulations, it is possible to create a post on the establishment that can be occupied by more than one employee. Therefore, the vacancy rate reflects the percentage of posts that are not filled.

TABLE 2.2.1 EMPLOYMENT AND VACANCIES BY THE PROGRAMME AS ON 31 MARCH 2020

Number of Number of posts on Number of posts employees Programme approved establish- Vacancy Rate filled additional to the estab- ment lishment SMS (13 to 16) 8 3 2% 0 Level 11 to 12 17 13 1% 2 Level 7 to 10 107 76 11% 6 Level 1 to 6 143 106 14% 0 TOTAL 275 198 28% 8

TABLE 2.2.2 EMPLOYMENT AND VACANCIES BY SALARY BAND AS ON 31 MARCH 2020

Total number Total number Total number of % of SMS posts % of SMS posts, SMS Level of funded SMS of SMS posts SMS posts filled filled vacant posts vacant Salary Level 16 0 0 0% 0 0% Salary Level 15 1 1 100% 0 0% Salary Level 14 1 0 0% 1 100% Salary Level 13 6 2 33% 4 67% TOTAL 8 3 37% 5 63%

296 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 297 2.3 FILLING OF SMS POSTS

TABLE 2.3.1 SMS POST INFORMATION AS ON 31 MARCH 2020

% of Total number Total number of Total number of SMS % of SMS posts SMS SMS Level of SMS posts funded SMS posts posts filled filled posts, vacant vacant Salary Level 16 0 0 0% 0 0% Salary Level 15 1 1 100% 0 0% Salary Level 14 1 0 0% 1 100% Salary Level 13 6 2 33% 4 67% TOTAL 8 3 37% 5 63%

TABLE 2.3.2 SMS POST INFORMATION AS ON 30 SEPTEMBER 2019

TABLE 2.3.3 ADVERTISING AND FILING OF SMS POST FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

% of Total number Total number of Total number of SMS % of SMS posts SMS SMS Level of SMS posts funded SMS posts posts filled filled posts, vacant vacant Director-General/ Head of Department 0 0 0% 0 0% Salary Level 16 0 0 0% 0 0% Salary Level 15 1 1 100% 0 0% Salary Level 14 1 0 0% 1 100% Salary Level 13 6 3 50% 3 50% TOTAL 8 4 50% 4 50%

296 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 297 TABLE 2.3.4 REASONS FOR NOT HAVING COMPLIED WITH THE FILLING OF FUNDED VACANT SMS ADVERTISED WITHIN 6 MONTHS AND FILLED WITHIN 12 MONTHS AFTER BECOMING VACANT FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Reasons for vacancies not advertised within six months The posts for Director Fleet Maintenance and Director Finance was advertised on the 24th March 2019. The moratorium for the filling of vacant posts was implemented in October 2019. The Department has appointed a service provider to review and re-align the organizational structure. The process of realignment has commenced. The project is envisaged to be completed before the end of the 2020/21 financial year. Upon finalizing the proposed structure the Department will submit the proposed structure to the DPSA Through the Office of the Premier. The Department to document all engagements and agreements with the Office of the Premier.

TABLE 2.3.5 DISCIPLINARY STEPS TAKEN FOR NOT COMPLYING WITH THE PRESCRIBED TIMEFRAMES FOR FILLING SMS POSTS WITHIN 12 MONTHS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Reasons for vacancies not advertised within six months None. Reasons for vacancies not filled within six months The posts for Director Fleet Maintenance and Director Finance was advertised on the 24th March 2019. The moratorium for the filling of vacant posts was implemented in October 2019. The Department has appointed a service provider to review and re-align the organizational structure. The process of realignment has commenced. The project is envisaged to be completed before the end of the 2020/21 financial year. Upon finalizing the proposed structure the Department will submit the proposed structure to the DPSA Through the Office of the Premier. The Department to document all engagements and agreements with the Office of the Premier.

298 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 299 2.4 JOB EVALUATION

Within a nationally determined framework, executing authorities may evaluate or re-evaluate any job in an organisation. In terms of the regulations, all vacancies on salary level 9 and higher must be evaluated before they are filled. The following table summarises the number of jobs that were evaluated during the year under review. The table also provides statistics on the number of posts that were upgraded or downgraded.

TABLE 2.4.1 JOB EVALUATION BY SALARY BAND FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Number of Posts Upgraded Posts downgraded % of posts posts on Number evaluated Salary band approved of Jobs by salary establish- Evaluated % of posts % of posts bands Number Number ment evaluated evaluated

Lower Skilled (Levels1-2) 8 0 0% 0 0% 0 0% Skilled (Levels 3-5) 124 0 0% 0 0% 0 0% Highly skilled production (Levels 6-8) 90 0 0% 0 0% 0 0% Highly skilled supervision (Levels 9-12) 45 0 0% 0 0% 0 0% Senior Management Service Band A 8 0 0% 0 0% 0 0% Senior Management Service Band B 0 0 0% 0 0% 0 0% Senior Management Service Band C 0 0 0% 0 0% 0 0% Senior Management Service Band D 0 0 0% 0 0% 0 0% 275 0 0% 0 0% 0 0%

The following table provides a summary of the number of employees whose positions were upgraded due to their post being upgraded. The number of employees might differ from the number of posts upgraded since not all employees are automatically absorbed into the new posts and some of the posts upgraded could be vacant.

TABLE 2.4.2 PROFILE OF EMPLOYEES WHOSE POSITIONS WERE UPGRADED DUE TO THEIR POSTS BEING UPGRADED FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Gender African Asian Coloured White Total

Female 0,00 0,00 0,00 0,00 0,00 Male 0,00 0,00 0,00 0,00 0,00 Total 0,00 0,00 0,00 0,00 0,00

Employees with a disability 0,00 0,00 0,00 0,00 0,00

298 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 299 The following table summarises the number of cases where remuneration bands exceeded the grade determined by job evaluation. Reasons for the deviation are provided in each case.

TABLE 2.4.3 EMPLOYEES WITH SALARY LEVELS HIGHER THAN THOSE DETERMINED BY JOB EVALUATION BY OCCUPATION FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Occupation Number of employees Job evaluation level Remuneration level Reason for deviation

None 0 0 0 0

Total number of employees whose salaries exceeded the level determined by job evaluation 0

Percentage of total employed 0

The following table summarises the beneficiaries of the above in terms of race, gender, and disability.

TABLE 2.4.4 PROFILE OF EMPLOYEES WHO HAVE SALARY LEVELS HIGHER THAN THOSE DETERMINED BY JOB EVALUATION FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Gender African Asian Coloured White Total

Female 0 0 0 0 0 Male 0 0 0 0 0 Total 0 0 0 0 0

Employees with a disability 0 Notes

Total number of Employees whose salaries exceeded the grades determine by job evaluation 0

300 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 301 2.5 EMPLOYMENT CHANGES

This section provides information on changes in employment over the financial year. Turnover rates indicate trends in the employment profile of the department. The following tables provide a summary of turnover rates by salary band and critical occupations.

TABLE 2.5.1 ANNUAL TURNOVER RATES BY SALARY BAND FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Number of employ- Appointments and Terminations and Salary band ees at beginning of transfers into the transfers out of the Turnover rate period April 2019 department department Lower skilled (Levels 1-2) 3 0 0 0% Skilled (Levels3-5) 107 0 3 3% Highly skilled production (Levels 6-8) 65 0 1 2% Highly skilled supervision (Levels 9-12) 31 0 1 3% Senior Management Service Bands A 4 0 1 25% Senior Management Service Bands B 0 0 0 0% Senior Management Service Bands C 0 0 0 0% Senior Management Service Bands D 0 0 0 0% Total 210 0 6 3%

300 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 301 TABLE 2.5.2 ANNUAL TURNOVER RATES BY CRITICAL OCCUPATION FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Number of Appointments Terminations employees at and trans- and transfers Turnover Critical occupation beginning of fers into the out of the rate period-1 April department department 2019

Administrative related, Permanent 11 0 0 0%

All artisans in the building metal machinery etc., Permanent 7 0 1 14%

Building and other property caretakers, Permanent 1 0 0 0%

Bus and heavy vehicle drivers, Permanent 1 0 0 0%

Cleaners in offices workshops hospitals etc., Permanent 4 0 0 0%

Client inform clerks (switchboard/receptionist informs clerks), Permanent 2 0 0 0%

Computer programmers., Permanent 1 0 0 0%

Finance and economics related, Permanent 3 0 1 33%

Financial and related professionals, Permanent 2 0 0 0%

Financial clerks and credit controllers, Permanent 3 0 0 0%

Head of department/chief executive officer, Permanent 1 0 0 0%

Human resources & organisational development & relate prof, Permanent 2 0 0 0%

Human resources clerks, Permanent 4 0 0 0%

Human resources related, Permanent 8 0 0 0%

Information technology related, Permanent 1 0 0 0%

Library mail and related clerks, Permanent 2 0 0 0%

Light vehicle drivers, Permanent 14 0 2 14%

Material-recording and transport clerks, Permanent 1 0 0 0%

Messengers porters and deliverers, Permanent 2 0 0 0%

Motor vehicle drivers, Permanent 1 0 0 0%

Other administration & related clerks and organisers, Permanent 53 0 1 2%

Other administrative policy and related officers, Permanent 1 0 0 0%

Other occupations, Permanent 5 0 0 0%

Secretaries & other keyboard operating clerks, Permanent 2 0 0 0%

Senior managers, Permanent 4 0 1 25%

Trade labourers, Permanent 14 0 0 0%

Total 149 0 6 4%

Notes The CORE classification, as prescribed by the DPSA, should be used for completion of this table.

302 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 303 The table below identifies the major reasons some staff left the department.

TABLE 2.5.3 REASONS WHY STAFF LEFT THE DEPARTMENT FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

% of Total Resigna- Termination Type Number tions

Death 1 0,5% Resignation 2 1% Expiry of contract 0 0% Dismissal – operational changes 0 0% Dismissal – misconduct 0 0% Dismissal – inefficiency 0 0% Discharged due to ill-health 0 0% Retirement 2 1% Transfer to other Public Service Departments 1 0,5% Other 0 0% Total 6 3% Total number of employees who left as a % of total employment 6 3%

TABLE 2.5.4 PROMOTIONS BY CRITICAL OCCUPATION FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Salary bands Progressions to Notch progres- Promotions to Employees 1 April promotions as a another notch sion as a % of Salary Band another salary 2019 % of employees within a salary employees by level by salary level level salary bands Clerks 0 0 0 0 0% Technicians and associate profes- 0 0 0 0 0% sionals TOTAL 0 0 0 0 0%

TABLE 2.5.5 PROMOTIONS BY SALARY BAND FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Salary bands Progressions to Notch progres- Promotions to Employees 1 promotions as a % another notch sion as a % of Salary Band another salary April 2019 of employees by within a salary employees by level salary level level salary bands Lower skilled (Levels 1-2) 2 0 0 2 100% Skilled (Levels3-5) 101 0 0 101 100% Highly skilled production (Levels 6-8) 72 0 0 67 93% Highly skilled supervision (Levels 9-12) 31 0 0 30 97% Senior Management (Level 13-16) 4 0 0 3 75% Total 210 0 0 203 97%

302 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 303 2.6. EMPLOYMENT EQUITY

TABLE 2.6.1 TOTAL NUMBER OF EMPLOYEES (INCLUDING EMPLOYEES WITH DISABILITIES) IN EACH OF THE FOLLOWING OCCUPATIONAL CATEGORIES AS AT 31 MARCH 2020

Male Female

Occupational Category Total Co- Co- African Indian White African Indian White loured loured

Legislators, senior officials and managers 0 0 0 0 1 2 0 0 3 Professionals 17 1 0 0 8 1 1 2 30 Technicians and associate professionals 17 2 1 0 34 4 0 5 63 Clerks 59 0 0 4 32 2 1 4 102 Service and sales workers 0 0 0 0 0 0 0 0

Skilled agriculture and fishery workers 0 0 0 0 0 0 0 0

Craft and related trades workers 0 0 0 0 0 0 0 0 Plant and machine operators and 0 0 0 0 0 0 0 0 assemblers Elementary occupations 0 0 0 0 0 0 0 0 Total 93 3 1 4 75 9 2 11 198 Employees with disabilities 2 0 0 0 1 0 0 0 3

TABLE 2.6.2 TOTAL NUMBER OF EMPLOYEES (INCLUDING EMPLOYEES WITH DISABILITIES) IN EACH OF THE FOLLOWING OCCUPATIONAL BANDS ON 31 MARCH 2020

Male Female

Occupational Band Total Co- Co- African Indian White African Indian White loured loured

Top Management 0 0 0 0 0 0 0 0

Senior Management 0 0 0 0 1 2 0 0 3 Professionally qualified and experienced 17 1 0 0 8 1 1 2 30 specialists and mid-management Skilled technical and academically qualified workers, junior management, 17 2 1 0 34 4 0 5 63 supervisors, foreman and superintendents Semi-skilled and discretionary decision 59 0 0 4 32 2 1 4 102 making Unskilled and defined decision making 0 0 0 0 0 0 0 0 Total 93 3 1 4 75 9 2 11 198

304 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 305 TABLE 2.6.3 RECRUITMENT FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Male Female

Occupational Band Total Co- Co- African Indian White African Indian White loured loured

Top Management 0 0 0 0 0 0 0 0 0 Senior Management 0 0 0 0 0 0 0 0 0 Professionally qualified and experienced 0 0 0 0 0 0 0 0 0 specialists and mid-management Skilled technical and academically qualified workers, junior management, supervisors, 0 0 0 0 0 0 0 0 0 foreman and superintendents Semi-skilled and discretionary decision 0 0 0 0 0 0 0 0 0 making Unskilled and defined decision making 0 0 0 0 0 0 0 0 0 Total 0 0 0 0 0 0 0 0 0 Employees with disabilities 0 0 0 0 0 0 0 0 0

TABLE 2.6.4 PROMOTIONS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Male Female

Occupational Band Total Co- Co- African Indian White African Indian White loured loured

TABLE 2.6.5 TERMINATIONS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Male Female

Occupational Band Total Co- Co- African Indian White African Indian White loured loured

Top Management 0 0 0 0 0 0 0 0 0 Senior Management 0 0 0 1 0 0 0 1 Professionally qualified and experienced 0 0 0 0 0 0 0 0 0 specialists and mid-management Skilled technical and academically qualified workers, junior management, supervisors, 2 0 0 0 0 0 0 0 2 foreman and superintendents Semi-skilled and discretionary decision 2 0 0 1 0 0 0 0 3 making Contract (Top Management), Permanent 0 0 0 0 0 0 0 0 0 Contract (Senior Management), Permanent 0 0 0 0 0 0 0 0 0 Contract (Professionally qualified), Permanent 0 0 0 0 0 0 0 0 0 Total 4 0 0 1 1 0 0 0 6 Employees with Disabilities 0 0 0 0 0 0 0 0 0

304 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 305 TABLE 2.6.6 DISCIPLINARY ACTION FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Male Female

Disciplinary action Co- Co- Total African Indian White African Indian White loured loured

Suspension without 0 0 0 0 0 0 0 0 0 pay Dismissal 0 0 0 0 0 0 0 0 0

TABLE 2.6.7 SKILLS DEVELOPMENT FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Male Female

Occupational Category Afri- Co- Afri- Co- Total Indian White Indian White can loured can loured

Legislators, senior officials and 0 0 0 0 0 0 0 0 0 managers Professionals 0 0 0 0 0 0 0 0 0 Technicians and associate profes- 14 2 1 0 13 4 0 0 34 sionals Clerks 13 0 0 4 19 2 1 0 39 Service and sales workers 0 0 0 0 0 0 0 0 0 Skilled agriculture and fishery 0 0 0 0 0 0 0 0 0 workers Craft and related trades workers 0 0 0 0 0 0 0 0 0 Plant and machine operators and 0 0 0 0 0 0 0 0 0 assemblers Elementary occupations 0 0 0 0 0 0 0 0 0 Total 27 2 1 4 32 6 1 0 73 Employees with disabilities 0 0 0 0 0 0 0 0 0

306 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 307 2.7. SIGNING OF PERFORMANCE AGREEMENTS - SMS MEMBERS

TABLE 2.7.1 SIGNING OF PERFORMANCE AGREEMENTS BY SMS MEMBERS AS ON 31 MARCH 2020

Signed performance Total number of Total number of Total number of agreements as % SMS Level signed performance funded SMS posts SMS members of total number of agreements SMS members Director-General/ Head of Department 0 0 0 0% Salary Level 16 0 0 0 0% Salary Level 15 1 1 1 100% Salary Level 14 1 0 0 0% Salary Level 13 6 2 2 33% Total 8 3 3 38%

TABLE 2.7.2 REASONS FOR NOT HAVING CONCLUDED PERFORMANCE AGREEMENTS FOR ALL SMS MEMBERS AS ON 31 MARCH 2020

Reasons

None

TABLE 2.7.3 DISCIPLINARY STEPS TAKEN AGAINST SMS MEMBERS FOR NOT HAVING CONCLUDED PERFORMANCE AGREEMENTS AS ON 31 MARCH 2020

Reasons

None

306 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 307 2.8 PERFORMANCE REWARDS

TABLE 2.8.1 PERFORMANCE REWARDS BY RACE, GENDER AND DISABILITY FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Beneficiary Profile Cost

Race and Gender Number of Number of % of total Average cost Cost (R’000) beneficiaries employees within group per employee

African 163 172 95% R 237,885.50 R1,459.00

Male 92 97 95% R124,885.50 R1,357.00

Female 71 75 95% R113,000.00 R1,591.50

Asian 2 3 67% R 9000.00 R 4500.00

Male 1 1 100% R4500.00 R4,500.00

Female 1 2 50% R4500.00 R4,500.00

Coloured 9 12 75% R 118,238.50 R13,137.60

Male 2 3 67% R8500.00 R4,250.00

Female 7 9 78% R 109,738.50 R15,676.90

White 10 16 63% R 117,554.00 R11,755.40

Male 3 5 60% R16,000.00 R5,333.00

Female 7 11 64% R101,554.00 R14,507.70

TOTAL 184 202 91% R389,130.00 R4.500.00

Employees with disabilities 2 2 100% R7 900.00 R3,950.00

To encourage good performance, the department has granted the following performance rewards during the year under review. The information is presented in terms of race, gender, disability, salary bands and critical occupations.

308 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 309 TABLE 2.8.2 PERFORMANCE REWARDS BY SALARY BAND FOR PERSONNEL BELOW SENIOR MANAGEMENT SERVICE, FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Beneficiary Profile Cost Total cost as % of total Number Number Average a % of the to- Salary Band within of benefi- of em- Cost (R’000) cost per tal personnel Salary ciaries ployees employee expenditure bands Lower Skilled (Levels 1-2) 2 3 67% R 7000.00 35 000 2% Skilled (level 3-5) 95 102 93% R 117,554.00 1237 2% Highly skilled production (level 6-8) 60 67 90% R 129, 331.50 2156 2% Highly skilled supervision (level 9-12) 27 30 90% R 118,238.50 4379 2% Total 184 202 91% R 372,124.00 11271 2%

TABLE 2.8.3 PERFORMANCE REWARDS BY CRITICAL OCCUPATION FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Beneficiary Profile Cost

Number of % of total Average Critical Occupation Number of beneficia- within occu- Cost (R’000) cost per employees ries pation employee

Lower Skilled (Levels 1-2) 2 3 67% R 7000.00 35 000 Skilled (level 3-5) 95 102 93% R 117,554.00 1237 Highly skilled production (level 6-8) 60 67 90% R 129, 331.50 2156 Highly skilled supervision (level 9-12) 27 30 90% R 118,238.50 4379 Total 184 202 91% R 372,124.00 11271

Notes The CORE classification, as prescribed by the DPSA, should be used for completion of this table.

TABLE 2.8 4 PERFORMANCE-RELATED REWARDS (CASH BONUS), BY SALARY BAND FOR SENIOR MANAGEMENT SERVICE FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Beneficiary Profile Cost Total cost as % of total Number Number Average a % of the to- Salary Band within Cost of benefi- of em- cost per tal personnel Salary (R’000) ciaries ployees employee expenditure bands Band A 0 1 0% R0.00 R0.00 0% Band B 0 0 0% R0.00 R0.00 0% Band C 3 3 2% R46,774.75 R15,591.58 2% Band D 0 0 0% R0.00 R0.00 0% Total 3 4 1,5% R46,774.75 R15.591.58 2%

308 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 309 2.9. FOREIGN WORKERS

The tables below summarise the employment of foreign nationals in the department in terms of salary band and major occupation.

TABLE 2.9.1 FOREIGN WORKERS BY SALARY BAND FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

01 April 2019 31 March 2020 Change Salary Band Number % of total Number % of total Number % Change Lower Skilled 0 0% 0 0% 0 0% Highly skilled production (Lev. 6-8) 0 0% 0 0% 0 0% Highly skilled supervision (Lev. 9-12) 0 0% 0 0% 0 0% Contract (Levels 9-12) 0 0% 0 0% 0 0% Contract (Levels 13-16) 0 0% 0 0% 0 0% Total 0 0% 0 0% 0 0%

TABLE 2.9.2 FOREIGN WORKERS BY MAJOR OCCUPATION FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

01 April 2019 31 March 2020 Change Salary Band Number % of total Number % of total Number % Change 0 0% 0 0% 0 0%

0 0% 0 0% 0 0% Total 0 0% 0 0% 0 0%

310 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 311 2.10 LEAVE UTILISATION

The Public Service Commission identified the need for careful monitoring of sick leave within the public service. The following tables indicate the use of sick leave and disability leave. In both cases, the estimated cost of the leave is also provided.

TABLE 2.10.1 SICK LEAVE FOR THE PERIOD 1 JANUARY 2019 TO 31 DECEMBER 2019

% Days Number % of total Esti- with of Em- Average employ- mated Salary band Total days Medical ployees days per ees using Cost certifica- using sick employee sick leave (R’000) tion leave Lower skilled (Levels 1-2) 12 5% 2 1% 6 R422 Skilled (Levels 3-5) 175 67% 37 18% 5 R15,540 Highly skilled production (Levels 6-8) 240 55% 44 21% 5 R8,820 Highly skilled supervision (Levels 9-12) 47 49% 19 9% 2 R3,780 Top and Senior management (Levels 13-16) 17 23% 3 1% 6 R422 Total 444 199% 105 50% 4 R28,984

TABLE 2.10.2 DISABILITY LEAVE (TEMPORARY AND PERMANENT) FOR THE PERIOD 1 JANUARY 2019 TO 31 DECEMBER 2019

% Days Number % of total Esti- with of Employ- employ- Average mated Salary band Total days Medical ees using ees using days per Cost certifica- disability disability employee (R’000) tion leave leave Lower skilled (Levels 1-2) 0 0% 0 0% 0 R0.00 Skilled (Levels 3-5) 103 0% 1 1% 1 R43,260 Highly skilled production (Levels 6-8) 0 0% 0 0% 0 R0.00 Highly skilled supervision (Levels 9-12) 0 0% 0 0% 0 R0.00 Senior management (Levels 13-16) 0 0% 0 0% 0 R0.00 Total 1 0% 1 1% 1 R43,260

310 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 311 The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service.

TABLE 2.10.3 ANNUAL LEAVE FOR THE PERIOD 1 JANUARY 2019 TO 31 DECEMBER 2019

Number of Employees Salary band Total days taken Average per employee using annual leave

Lower skilled (Levels 1-2) 33 3 11 Skilled Levels 3-5) 1300 107 12 Highly skilled production (Levels 6-8) 890 65 14 Highly skilled supervision (Levels 9-12) 655 31 21 Senior management (Levels 13-16) 89 4 22 Total 2967 210 14

TABLE 2.10.4 CAPPED LEAVE FOR THE PERIOD 1 JANUARY 2019 TO 31 DECEMBER 2019

The average Average capped Total days of Number of number of days leave per em- Salary band capped leave Employees using taken per employee as on 31 taken capped leave ployee March 2020

Lower skilled (Levels 1-2) 0 0 0 Skilled (Levels 3-5) 0 0 0 0 Highly skilled production (Levels 6-8) 0 0 0 0 Highly skilled supervision (Levels 9-12) 0 0 0 0 Senior management (Levels 13-16) 0 0 0 0 Total 0 0 0 0

The following table summarises payments made to employees as a result of leave that was not taken.

TABLE 2.10.5 LEAVE PAY-OUTS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Average per employee Reason Total amount (R’000) Number of employees (R’000)

Leave pay-out for 2018/190 due to non-utilisation of leave for R0.00 0 R0.00 the previous cycle

Capped leave pay-outs on termination of service for 2019/20 R64,375.72 2 R32,187.86

Current leave pay-out on termination of service for 2019/20 R90,267.54 3 R30,089.18 Total R154,643.26 5 R30,928.65

312 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 313 2.11. HIV/AIDS & HEALTH PROMOTION PROGRAMMES

TABLE 2.11.1 STEPS TAKEN TO REDUCE THE RISK OF OCCUPATIONAL EXPOSURE

Units / Categories of Employees Identified to be at High Risk of Contracting HIV & Related Diseases (if any) Key Steps Taken to Reduce the Risk

None None

TABLE 2.11. 2 DETAILS OF HEALTH PROMOTION AND HIV/AIDS PROGRAMMES (TICK THE APPLICABLE BOXES AND PROVIDE THE REQUIRED INFORMATION)

Question Yes No Details, if yes

1. Has the department designated a member of the SMS to implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regu- lations, 2001? If so, provide her/his name and position. X

2. Does the department have a dedicated unit or has it designated specific Two officials from HR Business unit are staff members to promote the health and well-being of your employees? involved in the task and budget is available. If so, indicate the number of employees who are involved in this task and X the annual budget that is available for this purpose.

3. Has the department introduced an Employee Assistance or Health Pro- The Employee Assistance Programme demotion Programme for your employees? If so, indicate the key elements/ pends on managers to refer through wellness services of this Programme. X office to service provider for formal referrals.

4. Has the department established (a) committee(s) as contemplated in Part VI E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please provide the names of the members of the committee and the X stakeholder(s) that they represent.

5. Has the department reviewed its employment policies and practices to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so X reviewed.

6. Has the department introduced measures to protect HIV-positive employees or those perceived to be HIV-positive from discrimination? If so, list the key elements of these measures. X

7. Does the department encourage its employees to undergo Voluntary TB Screening and voluntary HIV (VCT) Counselling and Testing? If so, list the results that you have you achieved. ongoing. X

8. Has the department developed measures/indicators to monitor & evaluate Through the distribution of condoms and the the impact of its health promotion Programme? If so, list these measures/ facilitation of wellness awareness events. indicators. X

312 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 313 2.12 LABOUR RELATIONS

TABLE 2.12.1 COLLECTIVE AGREEMENTS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Subject matter Date None 0 Total number of Collective agreements None

The following table summarises the outcome of disciplinary hearings conducted within the department for the year under review.

TABLE 2.12.2 MISCONDUCT AND DISCIPLINARY HEARINGS FINALISED FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Outcomes of disciplinary hearings Number % of the total

Correctional counselling 0 0%

Verbal warning 0 0%

Written warning 1 1%

Final written warning 0 0%

Suspended without pay 0 0%

Fine 0 0%

Demotion 0 0%

Dismissal 0 0%

Not guilty 0 0%

Cases withdrawn 0 0%

Total 1 1%

314 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 315 TABLE 2.12.3 TYPES OF MISCONDUCT ADDRESSED AT DISCIPLINARY HEARINGS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Type of misconduct (based on annexure A) Number % of the total Abscondment from work 0 0% Total 0 0%

TABLE 2.12.4 GRIEVANCES LOGGED FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Grievances Number % of Total Number of grievances resolved 0 0% Number of grievances not resolved 1 1% Total number of grievances lodged 1 1%

TABLE 2.12.5 DISPUTES LODGED WITH COUNCILS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Disputes Number % of Total Number of disputes upheld 1 1% Number of disputes dismissed 0 0% Total number of disputes lodged 3 1%

TABLE 2.12.6 STRIKE ACTIONS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Total number of persons working days lost 0 Total costs working days lost 0 Amount recovered as a result of no work no pay (R’000) 0

TABLE 2.12.7 PRECAUTIONARY SUSPENSIONS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Number of people suspended 0 Number of people whose suspension exceeded 30 days 0 Average number of days suspended 0 Cost of suspension(R’000) R0.00

314 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 315 2.13 SKILLS DEVELOPMENT

This section highlights the efforts of the department with regard to skills development.

TABLE 2.13.1 TRAINING NEEDS IDENTIFIED FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Training needs identified at start of the reporting period Number of employees Occupational category Gender as at 1 Skills Pro- April 2019 Other Learner- grammes & forms of Total ships other short training courses

Female 3 0 4 0 4 Legislators, senior officials and managers Male 0 0 0 0 0 Female 14 0 6 0 6 Professionals Male 18 0 4 0 4 Female 43 0 8 0 8 Technicians and associate professionals Male 22 0 12 0 12 Female 40 0 11 0 11 Clerks Male 70 0 15 0 15 Female 0 0 0 0 0 Service and sales workers Male 0 0 0 0 0 Female 0 0 0 0 0 Skilled agriculture and fishery workers Male 0 0 0 0 0 Female 0 0 0 0 0 Craft and related trades workers Male 0 0 0 0 0 Female 0 0 0 0 0 Plant and machine operators and assemblers Male 0 0 0 0 0 Female 0 0 0 0 0 Elementary occupations Male 0 0 0 0 0 Female 0 0 0 0 0 Sub Total Male 0 0 0 0 0 Total 210 0 60 0 60

316 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 317 TABLE 2.13.2 TRAINING PROVIDED FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Training provided within the reporting period Number of employees Occupational category Gender as at 1 April 2019 Skills Programmes Other forms Learnerships Total & other short of training courses

Female 3 0 0 0 0 Legislators, senior officials and managers Male 0 0 0 0 0 Female 14 0 0 0 0 Professionals Male 18 0 0 0 0 Female 43 0 5 0 5 Technicians and associate professionals Male 22 0 3 0 3 Female 40 0 7 0 7 Clerks Male 70 0 4 0 4 Female 0 0 0 0 0 Service and sales workers Male 0 0 0 0 0 Female 0 0 0 0 0 Skilled agriculture and fishery workers Male 0 0 0 0 0 Female 0 0 0 0 0 Craft and related trades workers Male 0 0 0 0 0 Female 0 0 0 0 0 Plant and machine operators and assemblers Male 0 0 0 0 0 Female 0 0 0 0 0 Elementary occupations Male 0 0 0 0 0 Female 0 0 0 0 0 Sub Total Male 0 0 0 0 0 Total 210 0 19 0 19

316 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 317 2.14. INJURY ON DUTY

The following tables provide basic information for injury on duty.

TABLE 2.14.1 INJURY ON DUTY FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Nature of injury on duty Number % of total Required basic medical attention only 2 100% Temporary Total Disablement 0 0% Permanent Disablement 0 0% Fatal 0 0% Total 2 100%

318 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 319 2.15. UTILISATION OF CONSULTANTS

The following tables provide basic information for injury on duty.

TABLE 2.15.1 REPORT ON CONSULTANT APPOINTMENTS USING APPROPRIATED FUNDS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Dura- Total number of consultants that worked tion Contract value in Project title on project (work- Rand days) 0 0 0,00

TABLE 2.15.2 ANALYSIS OF CONSULTANT APPOINTMENTS USING APPROPRIATED FUNDS, IN TERMS OF HISTORICALLY DISADVANTAGED INDIVIDUALS (HDIS) FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Percent- Percentage age man- Number of consultants from HDI Project title ownership by agement groups that work on the project HDI groups by HDI groups 0 0 0,00

TABLE 2.15.3 REPORT ON CONSULTANT APPOINTMENTS USING DONOR FUNDS FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Total Number of consul- Duration Project title tants that (Work- Donor and contract value in Rand worked on days) the project 0 0 0,00

Total Total individu- Total number of projects duration Total contract value in Rand al consultants Workdays 0 0 0,00

TABLE 2.15.4 ANALYSIS OF CONSULTANT APPOINTMENTS USING DONOR FUNDS, IN TERMS OF HISTORICALLY DISADVANTAGED INDIVIDUALS (HDIS) FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Percent- Percentage age man- Number of consultants from HDI Project title ownership by agement groups that work on the project HDI groups by HDI groups 0 0 0,00

318 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 319 2.16. SEVERANCE PACKAGES

TABLE 2.16.1 GRANTING EMPLOYEE-INITIATED SEVERANCE PACKAGES FOR THE PERIOD 1 APRIL 2019 AND 31 MARCH 2020

Number of Number of Number of Number of applications applications packages Salary band applications referred to supported by approved by received the MPSA MPSA department

Lower skilled (Levels 1-2) 0 0 0 0 Skilled Levels 3-5) 0 0 0 0 Highly skilled production (Levels 6-8) 0 0 0 0 Highly skilled supervision (Levels 9-12) 0 0 0 0 Senior management (Levels 13-16) 0 0 0 0 Total 0 0 0 0

320 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 321 PART E FINANCIAL INFORMATION

320 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 321 GaUTEnG pRovincE Roads and TRanspoRT REPUBLIC OF SOUTH AFRICA

ANNUAL FINANCIAL STATEMENTS FOR g-FleeT Management

FOR THE YEAR ENDED 31 MARCH 2020

322 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 323 TABLE OF CONTENTS

REPORT OF THE AUDITOR GENERAL 324

ANNUAL FINANCIAL STATEMENTS 328

322 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 323 1. REPORT OF THE AUDITOR GENERAL

Opinion Restatement of corresponding figures 1. I have audited the financial statements of g-FleeT Management, 7. As disclosed in note 3 to the financial statements, the correspond- set out on pages 328 to 365, which comprise the statement of fi- ing figures for 31 March 2019 were restated as a result of errors in nancial position as at 31 March 2020, statement of financial per- the financial statements of the trading entity at, and for the year formance, statement of changes in net assets and cash flow state- ended 31 March 2020. ment for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies. Fruitless and wasteful expenditure 2. In my opinion the financial statements present fairly, in all mate- 8. As disclosed in note 28 to the financial statements, the trading rial respects, the financial position of g-FleeT Management as at entity incurred fruitless and wasteful expenditure of R27 886 000, 31 March 2020, and its financial performance and cash flows for of this amount, R27 836 462 is in the process of being investigated. the year then ended, in accordance with the South African Stan- dards of Generally Recognised Accounting Practice (SA standards Significant subsequent events of Grap) and the requirements of the Public Finance Management 9. I draw attention to note 27 to the financial statements, which deals Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA). with subsequent events and specifically the possible effects of the future implications of covid-19 on the trading entity’s future pros- Basis for opinion pects, performance and cash flows. Management have also de- 3. I conducted my audit in accordance with the International Stan- scribed how they plan to deal with these events and circumstances. dards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for Responsibilities of the accounting officer for the financial state- the audit of the financial statements section of this auditor’s report. ments 4. I am independent of the trading entity in accordance with sections 10. The accounting officer is responsible for the preparation and fair 290 and 291 of the Code of ethics for professional accountants presentation of the financial statements in accordance with the SA and parts 1 and 3 of the International Code of Ethics for Profession- standards of Grap and the requirements of the PFMA, and for such al Accountants (including International Independence Standards) of internal control as the accounting officer determines is necessary the International Ethics Standards Board for Accountants (IESBA to enable the preparation of financial statements that are free from codes), as well as the ethical requirements that are relevant to my material misstatement, whether due to fraud or error. audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA codes. 11. In preparing the financial statements, the accounting officer is re- 5. I believe that the audit evidence I have obtained is sufficient and sponsible for assessing the trading entity’s ability to continue as a appropriate to provide a basis for my opinion. going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless Emphasis of matters the appropriate governance structure either intends to liquidate the 6. I draw attention to the matters below. My opinion is not modified trading entity or to cease operations, or has no realistic alternative in respect of these matters. but to do so.

324 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 325 Auditor-general’s responsibilities for the audit of the financial 17. I performed procedures to determine whether the reported perfor- statements mance information was properly presented and whether perfor- 12. My objectives are to obtain reasonable assurance about whether mance was consistent with the approved performance planning the financial statements as a whole are free from material misstate- documents. I performed further procedures to determine whether ment, whether due to fraud or error, and to issue an auditor’s report the indicators and related targets were measurable and relevant, that includes my opinion. Reasonable assurance is a high level of and assessed the reliability of the reported performance information assurance but is not a guarantee that an audit conducted in accor- to determine whether it was valid, accurate and complete. dance with the ISAs will always detect a material misstatement 18. The material findings in respect of the usefulness and reliability of when it exists. Misstatements can arise from fraud or error and are the selected programme are as follows: considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users PROGRAMME 2: CORPORATE AND FINANCIAL MANAGEMENT taken on the basis of these financial statements. Percentage of maintenance expenditure on Gauteng township 13. A further description of my responsibilities for the audit of the finan- businesses cial statements is included in the annexure to this auditor’s report. 19. The source information and method of calculation for measuring the Report on the audit of the annual performance report planned indicator was not clearly defined and related systems and Introduction and scope processes were not adequate to enable consistent measurement 14. In accordance with the Public Audit Act of South Africa, 2004 (Act and reliable reporting of performance against the predetermined No. 25 of 2004) (PAA) and the general notice issued in terms thereof, indicator definitions. As a result, limitations were placed on the I have a responsibility to report on the usefulness and reliability of scope of my work and I was unable to audit the reliability of the the reported performance information against predetermined objec- achievement of 3.8 per cent reported against the target 5 per cent in tives for the selected programme presented in the annual perfor- the annual performance report. mance report. I performed procedures to identify material findings but not to gather evidence to express assurance. Other matters 15. My procedures address the usefulness and reliability of the reported 20. I draw attention to the matters below. performance information, which must be based on the approved performance planning documents of the trading entity. I have not eval- Achievement of planned targets uated the completeness and appropriateness of the performance 21. Refer to the annual performance report on pages 262 - 269 to or indicators included in the planning documents. My procedures do information on the achievement of planned targets for the year not examine whether the actions taken by the trading entity enabled and explanations provided for the under- and overachievement of service delivery. My procedures also do not extend to any disclo- a number of targets. This information should be considered in the sures or assertions relating to planned performance strategies and context of the material findings on the usefulness and reliability of information in respect of future periods that may be included as part the reported performance information in paragraph 17 of this report. of the reported performance information. Accordingly, my findings do not extend to these matters. Adjustment of material misstatements 16. I evaluated the usefulness and reliability of the reported perfor- 22. I identified material misstatements in the annual performance re- mance information in accordance with the criteria developed from port submitted for auditing. These material misstatements were in the performance management and reporting framework, as defined the reported performance information of programme 2: corporate in the general notice, for the following selected programmes pre- and financial management. As management subsequently corrected sented in the annual performance report of the trading entity for the only some of the misstatements, I raised a material finding on the year ended 31 March 2020: usefulness and reliability of the reported performance information.

Pages in the annual Report on the audit of compliance with legislation Programme performance report Introduction and scope 23. In accordance with the PAA and the general notice issued in terms Programme 2 – corporate and 264 - 269 financial management thereof, I have a responsibility to report material findings on the trading entity’s compliance with specific matters in key legislation. I performed procedures to identify findings but not to gather

324 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 325 evidence to express assurance. to communicate the matter to those charged with governance and 24. The material findings on compliance with specific matters in key request that the other information be corrected. If the other infor- legislation are as follows: mation is not corrected, I may have to retract this auditor’s report and re-issue an amended report as appropriate. However, if it is Annual financial statements corrected this will not be necessary. 25. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework, as Internal control deficiencies required by section 40(1)(a) of the PFMA. Material misstatements of 33. I considered internal control relevant to my audit of the financial payables from exchange transactions, receivables from exchange statements, reported performance information and compliance with transactions, depreciation and disclosure items identified by the au- applicable legislation; however, my objective was not to express ditors in the submitted financial statement were corrected, resulting any form of assurance on it. The matters reported below are limited in the financial statements receiving an unqualified opinion. to the significant internal control deficiencies that resulted in the findings on the performance report and the findings on compliance Expenditure management with legislation included in this report. 26. Effective and appropriate steps were not taken to prevent irregular 34. The accounting officer did not take effective steps to implement ef- expenditure amounting to R16 035 000 as disclosed in note 29 to fective oversight regarding the adequate systems of internal control the annual financial statements, as required by section 38(1)(c)(ii) of for financial reporting, performance information reporting and the the PFMA and treasury regulation 9.1.1. The trading entity deviated monitoring of compliance with laws and regulations. on expired contracts in contravention of treasury regulation 16A6.1. 35. The action plans developed to address the internal and external au- 27. Payments were not made within 30 days or an agreed period after dit findings were not implemented fully as there were instances of receipt of an invoice, as required by treasury regulation 8.2.3. repeat findings identified. 36. Senior management did not always implement proper record keep- Procurement and contract management ing in a timely manner to ensure that complete, relevant and accu- 28. Some of the goods and services with a transaction value below rate information is accessible and available to support financial and R500 000 were procured without obtaining the required price quota- performance reporting. tions, as required by treasury regulation 16A6.1. 37. The accounting officer did not always ensure that controls over rec- onciliations and daily and monthly processing of transactions were Other information implemented effectively for financial and performance reporting. 29. The accounting officer is responsible for the other information. The 38. The accounting officer did not adequately review and monitor com- other information comprises the information included in the annual pliance with applicable laws and regulations. report, which includes the audit committee’s report. The other information does not include the financial statements, the auditor’s report and the selected programmes presented in the annual performance report that have been specifically reported in this auditor’s report. 30. My opinion on the financial statements and findings on the report- Johannesburg ed performance information and compliance with legislation do not 30 September 2020 cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon. 31. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programmes presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated. 32. I did not receive the other information prior to the date of this auditor’s report. When I do receive and read this information, if I conclude that there is a material misstatement therein, I am required

326 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 327 ANNEXURE – AUDITOR-GENERAL’S RESPONSIBILITY FOR THE AUDIT

• conclude on the appropriateness of the accounting officer’s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on

326 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 327 2. ANNUAL FINANCIAL STATEMENTS

g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Index

The reports and statements set out below comprise the annual financial statements presented to the provincial legislature:

Page

Statement of Financial Position as at 31 March 2020 2

Statement of Financial Performance for the period ended 31 March 2020 3

Statement of Changes in Net Assets 4

Cash Flow Statement for the period ended 31 March 2020 5

Accounting Policies 6 - 16

Notes to the Annual Financial Statements 17 - 38

Member Designation

328 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 329

1 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Statement of Financial Position as at 31 March 2020 2020 2019 *Restated Note(s) R '000 R'000

Assets Current Assets Inventories 4 33 347 21 758 Finance lease receivables 7 6 692 12 753 Receivables from exchange transactions 8 197 097 229 785 Prepayments 9 1 941 1 195 Other Receivables 32 148 102 Cash and cash equivalents 10 1 497 680 1 053 092 1 736 905 1 318 685

Non-Current Assets Property, plant and equipment 5 1 341 155 1 459 145 Intangible assets 6 1 507 1 755 Finance lease receivables 7 14 497 20 549 Rental deposit 30 6 91 1 357 165 1 481 540 Total Assets 3 094 070 2 800 225

Liabilities Current Liabilities Finance lease obligation 11 64 296 Payables from exchange transactions 13 90 910 89 360 Other Payables 14 9 564 8 075 100 538 97 731

Non-Current Liabilities Finance lease obligation 11 14 641 14 673 Long-term leave accrual 12 3 009 3 068 17 650 17 741 Total Liabilities 118 188 115 472 Net Assets 2 975 882 2 684 753 Accumulated surplus 2 975 883 2 684 751

328 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 329 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Statement of Financial Performance for the period ended 31 March 2020 2020 2019 *Restated Note(s) R '000 R'000

Revenue Revenue from exchange transactions Revenue from auction of vehicles 31 151 438 112 541 Revenue from leases 15 851 342 835 245 Realisation of property lease liability 18 1 200 1 200 Bad debts recovered 16 - 293 Other income 33 2 107 2 000 Interest received 17 68 934 63 811 Total revenue from exchange transactions 1 075 021 1 015 090

Expenditure Employee related costs 19 (90 113) (84 458) Depreciation and amortisation 38 (129 704) (140 971) Finance costs 34 (1 220) (1 263) Repairs and maintenance 36 (102 432) (132 106) Cost of sales 35 (201 725) (131 726) General expenses 20 (258 693) (245 764) Total expenditure (783 887) (736 288) Surplus for the year 291 134 278 802

330 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 331 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Statement of Changes in Net Assets Accumulated Total net surplus assets R '000 R '000

Balance at 01 April 2018 2 405 949 2 405 949 Changes in net assets Surplus for the year 278 802 278 802 Total changes 278 802 278 802 Restated* Balance at 01 April 2019 2 684 749 2 684 749 Changes in net assets Surplus for the year 291 134 291 134 Total changes 291 134 291 134 Balance at 31 March 2020 2 975 883 2 975 883 Note(s)

330 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 331 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Cash Flow Statement for the period ended 31 March 2020 2020 2019 *Restated Note(s) R '000 R'000

Cash flows from operating activities

Receipts Revenue from leases 884 718 865 056 Interest income 62 389 55 798 Revenue from auction of vehicles 151 438 111 931 Income from transport fees 2 012 1 899 1 100 557 1 034 684

Payments Employee costs (89 163) (84 844) Operating Expenditure and repairs and maintanance (312 217) (343 212) (401 380) (428 056) Net cash flows from operating activities 21 699 177 606 628

Cash flows from investing activities

Purchase of property, plant and equipment 5 (259 111) (451 381)

Cash flows from financing activities

Capital repayment of finance lease obligation (264) (542) Interest repayment of finance lease obligations (1 220) (1 263) Net cash flows from financing activities (1 484) (1 805)

Net increase/(decrease) in cash and cash equivalents 444 588 158 125 Cash and cash equivalents at the beginning of the year 1 053 092 894 967 Cash and cash equivalents at the end of the year 10 1 497 680 1 053 092

332 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 333 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Accounting Policies

1. Background

g-FleeT is a provincial Trading Entity, which reports to the Accounting Officer of the Gauteng Department of Roads and Transport, its controlling entity. The mandate of the entity is to be the leading provider of fleet management services within government. The Entity is incorporated and operates in the Republic of South Africa.

The financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP), issued by the Accounting Standards Board (ASB) in accordance with Section 40(1) of the Public Finance Management Act, 1, 1999 (PFMA). These financial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention as the basis of measurement, unless specified otherwise.

A summary of the significant accounting policies, which have been consistently applied in the preparation of these financial statements, are disclosed below. The Entity has not applied any transitional provisions during the current period.

1.1 Presentation currency

These annual financial statements are presented in South African Rand, which is the functional currency of the entity, unless stated otherwise the financial statement figures are rounded to the nearest thousand.

1.2 Going concern assumption

Management is not aware of any matters or circumstances arising since the end of the financial year that were otherwise not dealt with in the Financial Statements, which significantly affect the financial position of the Entity or the results of its operations. These Financial Statements have been prepared based on the expectation that the Entity will continue to operate as a going concern for at least the next 12 months.

1.3 Offsetting

Assets, liabilities, revenues and expenses have not been offset except when offsetting is required or permitted by a standard of GRAP

1.4 Significant judgements and sources of estimation uncertainty

Estimates

The preparation of financial information requires the use of estimates and assumptions about future conditions.The estimates and associated assumptions are based on historical experience and other factors that are considered to be reasonable under the circumstances. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

Management has made the following accounting estimates and assumptions, which have the most significant effect on the amounts recognised in the financial statements:

Impairment testing

The entity reviews and tests the carrying value of assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. Assets are grouped at the lowest level for which identifiable cash flows are largely independent of cash flows of other assets and liabilities. If there are indications that impairment may have occurred, estimates are prepared of expected future cash flows for each group of assets. Expected future cash flows used to determine the value in use of tangible and intangible assets are inherently uncertain and could materially change over time. They are significantly affected by a number of factors including trade values and retail values together with economic factors such as interest rates.

Provisions

Provisions are recognised when the entity has a present obligation as a result of a past event and it is probable that this will result in an outflow of economic benefits that can be estimated reliably.Provisions are reviewed at reporting date and the amount of a provision is the present value of the expenditure expected to the required to settle the obligation.

1.4 Significant judgements and sources of estimation uncertainty (continued)

Segment reporting ( GRAP 18)

Significant judgement is used in identifying service and geographical segments of the g-FleeT Management.

Impairment of Trade and other receivables

The Entity makes provision for doubtful debts relating to all long outstanding debts from customers. In determining the value of doubtful debts, the Entity estimates future expected cash flows arising from those receivables which, in its judgement, are impaired.

Useful lives and residual values of property, plant and equipment (PPE)

Property, plant and equipment is depreciated over its useful life taking into account residual values, where appropriate. Reassessments of useful lives and residual values are performed annually after considering factors such as the condition of the asset, maintenance programmes, and relevant market information, and manner of recovery. In re-assessing residual values, the Entity considers the remaining life of the asset and its projected disposal value.

Significant judgements

In the process of applying the accounting policies of the Entity, management has made the following judgements which have a significant effect on the amounts recognised in the financial statements:

Classification of leases

The Entity has entered into lease agreements acting as both a lessor and lessee. The Entity uses judgement to determine, based on the evaluation of the terms and conditions of lease agreements, the appropriate treatment of the leases as either finance leases or operating leases.

Contingent liabilities

The existence of the obligation arising from legal claims against the Entity may only be determined through the outcome of legal proceedings. Management applies its judgement in determining whether a present obligation exists, and therefore whether these claims should be recognised as provisions or disclosed as contingent liabilities.

Cash- and non-cash generating assets

Management has applied its judgement in determining that all the entity's assets are cash generating. The entity is required to sustain itself financially and all assets are employed in generating enough profit and cash flow to remain self-sustained.

334 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 335 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Accounting Policies

1.5 Property, plant and equipment

Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one period.

The cost of an item of property, plant and equipment is recognised as an asset when:  it is probable that future economic benefits or service potential associated with the item will flow to the entity; and  the cost of the item can be measured reliably.

Initial recognition and measurement

Property, plant and equipment is initially measured at cost on its acquisition date.

The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted in arriving at the cost.

Subsequent measurement

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses. Subsequent expenditure relating to property, plant and equipment is capitalised if it is probable that future economic benefits or potential service delivery associated with the expenditure will flow to the Entity and the cost or fair value of the subsequent expenditure can be reliably measured.

Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value. Depreciation commences when the asset is available for use. The residual value, useful life and depreciation method for each asset are reviewed at the end of each reporting period. If expectations differ from previous estimates, the change is accounted for as a change in accounting estimate.

Item Depreciation method Average useful life Machinery and tools Straight line 5 Years Furniture and office equipment Straight line 5 - 25 years Motor vehicles Straight line  Motor vehicles- passenger 7 years  Motor vehicles - commercial 11 years Computer equipment Straight line 3 - 6 years Leasehold improvements Straight line 20 - 30 years Leased assets Straight line Lease term Assets under construction Straight line Not depreciated

Reviewing the useful life of an asset on an annual basis does not require the entity to amend the previous estimate unless expectations differ from the previous estimate.

Assets capitalised under finance lease are depreciated over their expected useful lives on the same basis as property, plant and equipment controlled by the Entity or where shorter, the term of the relevant lease if there is no reasonable certainty that the Entity will obtain ownership by the end of the lease term.

Derecognition

The carrying amount of an item of property, plant and equipment is derecognised on disposal, or when no future economic benefits or service potential are expected from its use or disposal. The gains or losses arising from derecognition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised.

1.6 Intangible assets

Initial recognition and measurement

Identifiable non-monetary assets without physical substance are classified and recognised as intangible assets.

Intangible assets are initially recognised at cost. The cost of intangible assets is the purchase price of the computer software purchased and any installation costs incurred.

Subsequent measurement

Intangible assets are shown at cost less accumulated amortisation and impairment losses. Amortisation is charged on a straight-line basis over the intangible asset's useful life, which is estimated to be between 2 - 9 years. Amortisation commences when the intangible asset is available for use. The estimated useful life, residual values and amortisation method are reviewed at the end of the financial year. Any adjustments arising from the annual review are applied prospectively as a change in accounting estimate.

Derecognition

Intangible assets are derecognised when the computer software is replaced or no longer used. The gain or loss arising on the disposal or retirement of an intangible asset is recognised in the Statement of Financial Performance.

1.7 Segment Reporting

A segment is an activity of the g-FleeT Management that generates economic benefits or service potential (including economic benefits or service potential relating to transactions between activities of the same entity) whose results are regularly reviewed by management to make decisions about resources to be allocated to that activity as well as in assessing its performance and for which separate financial information is available. The g-FleeT Management shall report separately information about each segment that has been identified.

336 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 337 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Accounting Policies

1.8 Financial instruments

A financial asset is any asset that is a cash or contractual right to receive cash or other financial asset. A financial liability is a contractual obligation to deliver cash or another financial asset to another Entity.

The Entity has the following types of financial assets: . Receivables from exchange transactions . Cash and cash equivalents . Finance lease receiveable

The Entity has the following types of financial liabilities: . Payables from exchange transactions . Finance lease obligation

The financial assets and liabilities of the Entity have all been classified as carried at amortised cost.

Initial recognition and measurement

Financial instruments are initially recognised at fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial instrument. Financial instruments are recognised when the Entity becomes a party to the contract.

Subsequent measurement

Trade and other receivables from exchange transactions

Trade and other receivables are stated at amortised cost using the effective interest rate method, less a provision for impairment. Trade and other receivables are assessed for indicators of impairment at each reporting date. Trade and other receivables are impaired where objective evidence of impairment exists, either individually or collectively for receivables that are not individually significant. If there is such evidence the recoverable amount is estimated and an impairment loss is recognised in accordance with GRAP 104.

If in the subsequent year the amount of the estimated impairment loss increases or decreases the previously recognised impairment provision will be increased or reduced.

Cash and cash equivalents

Cash and cash equivalents are carried in the Statement of Financial Position at amortised cost using the effective interest rate method. Cash and cash equivalents comprise cash at banks and short-term deposits.

Trade and other payables

Trade and other payables are stated at amortised cost using the effective interest rate method.

Derecognition

The Entity derecognises financial assets, where applicable, a part of a financial asset or part of a group of similar financial assets when:  the contractual right to the cash flows from the financial asset expire, are settled or waived;  the Entity transfers to another party substantially all the risks and rewards of ownership of the financial asset; or  the Entity, despite having retained some significant risks and rewards of ownership of the financial asset, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer.

Derecognition thus occurs when trade and other receivables are settled by the client, and when cash balances are withdrawn from the bank or disbursed.

The Entity derecognises financial liabilities when the obligation under the liability is discharged or cancelled or expires. Derecognition thus occurs when the liability has been paid.

Statutory receivables are receivables that arise from legislation, supporting regulations, or similar means, and require settlement by another entity in cash or another financial asset.

Carrying amount is the amount at which an asset is recognised in the statement of financial position.

The cost method is the method used to account for statutory receivables that requires such receivables to be measured at their transaction amount, plus any accrued interest or other charges (where applicable) and, less any accumulated impairment losses and any amounts derecognised.

Nominal interest rate is the interest rate and/or basis specified in legislation, supporting regulations or similar means.

The transaction amount (for purposes of this Standard) for a statutory receivable means the amount specified in, or calculated, levied or charged in accordance with, legislation, supporting regulations, or similar means.

1.9 Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

Finance leases - lessor

Amounts due from lessees under finance leases are recorded as receivables at commencement of the lease, and measured at the amount of Entity’s net investment in the leases.

The Entity recognises gains or losses arising from the sale in terms of the finance lease at inception of the lease. The gain or loss is determined by the difference between the net investment in the lease and the carrying value of the vehicle. The gain or loss is included in surplus or deficit.

During the lease term, finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Entity’s net investment outstanding in respect of the leases. The accounting policy for impairment of trade and other receivables is also applied to impairment of the net investment in lease receivable.

The accounting policy for derecognition of trade and other receivables is also applied to derecognition of the net investment in lease receivable. At the end of the lease term, the Entity recognises the unguaranteed residual value of the leased vehicle as part of property plant and equipment. If at the end of the lease term the lessee is still in possession of the leased vehicle, the lease is then accounted for as month-to-month lease contract.

Finance leases - lessee

Where the Entity enters into a finance lease, assets subject to finance lease agreements are capitalised at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease. Subsequent to initial recognition, the leased assets are accounted for in accordance with the stated accounting policies applicable to property, plant, equipment.

Corresponding liabilities are included in the Statement of Financial Position as finance lease liabilities. Lease payments are allocated between the lease finance cost and the capital repayment. The finance charge is allocated to each period during the lease term so as to achieve a constant rate of interest on the outstanding liability. The accounting policy for derecognition of trade and other payables is also applied to derecognition of the finance lease payable.

Operating leases - lessor

Operating lease revenue is recognised as revenue on a straight-line basis over the lease term. The Entity does not include lease rental escalation clauses in the agreements. Revenue for operating leases is disclosed under revenue from exchange transactions in the Statement of Financial Performance. Costs, including depreciation, incurred in earning the lease revenue are recognised as an expense. Revenue related to fleet management services is recognised as the service is rendered.

1.10 Inventories

Inventory comprises of items of property, plant and equipment that was previously held for rental. Inventories are recognised at the carrying amount of the item of property, plant and equipment when management decide to sell it.

338 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 339 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Accounting Policies

1.10 Inventories (continued)

Inventory write downs to net realisable value and all losses of inventories are recognised as an expense in the period the write down or the loss occurs. Reversals of write downs of inventories arising from an increase in net realisable are recognised as a reduction in the inventories recognised as an expense in the period the reversal occurs.

When inventories are sold the carrying amount is recognised as an expense in the period the related revenue is recognised.

1.11 Impairment of cash-generating assets

Cash-generating assets are those assets held by the Entity with the primary objective of generating a commercial return. The Entity assesses at each reporting date whether there is an indication that assets may be impaired. If any indication exist, or when annual impairment testing for assets is required, the Entity estimates the asset's recoverable amount.

An asset's recoverable amount is the higher of its fair value less costs of disposal and its value in use and is determined for the individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets. In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the assets. In determining fair value less costs of disposal, an appropriate valuation model is used. These calculations are corroborated by valuation multiples or other available fair value indicators.

Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The reversal of the loss is recognised as part of the surplus or deficit in the Statement of Financial Position.

1.12 Employee benefits

Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees.

Short-term employee benefits

Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled within twelve months after the end of the period in which the employees render the related service.

Short-term employee benefits includes:  wages, salaries and social security contributions;  short-term compensated absences (such as paid annual leave and paid sick leave) where the compensation for the absences is due to be settled within twelve months after the end of the reporting period in which the employees render the related employee service;  bonus, incentive and performance related payments payable within twelve months after the end of the reporting period in which the employees render the related service; and  non-monetary benefits (for example, medical care, and free or subsidised goods or services such as housing, cars and cellphones) for current employees.

When an employee has rendered service to the Entity during a reporting period, the Entity recognises the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service: - as a liability (accrued expense), after deducting any amount already paid. If the amount already paid exceeds the undiscounted amount of the benefits, the Entity recognise that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund; and - as an expense.

The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs. The Entity measures the expected cost of accumulating compensated absences as the additional amount that the entity expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

1.12 Employee benefits (continued)

The Entity recognises the expected cost of bonus, incentive and performance related payments when the Entity has a present legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligation can be made. A present obligation exists when the Entity has no realistic alternative but to make the payments.

1.13 Commitments

Commitments are disclosed for contracts that are entered into before the reporting date, but goods and services have not yet been received.

Revenue from non-exchange transactions refers to transactions where the Entity received revenue from another Entity without directly giving approximately equal value in exchange. The Entity receives conditional grants from a client in order to fund the purchase of vehicles for its officials. The grants received are recognised as cash and a corresponding liability. These grants are conditional upon the purchase of these vehicles, and are recognised as revenue once the vehicles are purchased. The grants are measured at the fair value of the consideration received.

Revenue arising from the use by others of entity assets yielding interest, royalties and dividends or similar distributions is recognised when:  It is probable that the economic benefits or service potential associated with the transaction will flow to the entity, and  The amount of the revenue can be measured reliably.

Interest is recognised, in surplus or deficit, using the effective interest rate method.

Royalties are recognised as they are earned in accordance with the substance of the relevant agreements.

Dividends or similar distributions are recognised, in surplus or deficit, when the entity’s right to receive payment has been established.

Service fees included in the price of the product are recognised as revenue over the period during which the service is performed.

1.14 Revenue from exchange transactions

Revenue comprises the fair value received of the consideration received or receivable for the sale of goods and services in the ordinary course of the Entity's activities.

The entity recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Entity and when specific criteria have been met for each of the Entity's activities as described below.

Revenue from auction of vehicles

All revenue from the sale of goods arises from the sale of vehicles previously leased to clients. All vehicles are sold via auction. Revenue from the sale of vehicles is recognised once the appointed auctioneers have provided evidence that the vehicle was sold on auction, and provided the price at which the vehicle was auctioned. Revenue is measured at the price determined on auction.

Kilometre tariffs

Revenue from excess kilometres (kilometres in excess of the contracted kilometres) is charged as the excess kilometre are travelled.

Income from other services relating to leases

For lease arrangements, a portion of the payments made by clients are for providing services ancillary to the lease, such as administration and tracking the vehicle. These payments are recognised on a straight-line basis over the term of the lease.

340 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 341 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Accounting Policies

1.14 Revenue from exchange transactions (continued)

Transport services to government employees

The entity earns revenue from providing transport services to government employees from other Government Departments impacted by the relocation of Provincial Governments from Pretoria to Johannesburg after the 1994 elections. Transport service revenue is recognised once a trip is completed.

Interest

Interest from bank accounts is recognised using the effective interest method.

Interest on finance lease receivables is recognised from commencement of the lease until the finance lease is settled, based on the interest rate implicit in the lease as determined at inception of the lease.

Recoveries from clients

Toll, fuel, oil, accident and traffic fine revenue is a direct charge and recoverable from the clients. This revenue is recognised when the client incurs the cost.

Income Tax

In terms of Income tax Act No.58 of 1962, Section 10 Exemptions, subsection 1 " There shall be exempt from the tax (a) the receipts and accruals of the Government, any provincial administration or of any other state "

Value Added Tax (VAT)

g-FleeT Management is currently not registered as a VAT vendor.

1.15 Finance costs

Borrowing costs are interest and other expenses incurred by an entity in connection with the borrowing of funds.

1.16 Comparative figures

When the presentation or classification of items in the financial statements is amended, prior period comparative amounts are reclassified. Prior period comparative amounts have also been restated for all prior period errors. The nature, amounts and reasons for the restatements and reclassifications are disclosed.

1.17 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised.

All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance. Fruitless and wasteful expenditure is also disclosed in the notes to the financial statements.

1.18 Irregular expenditure

Irregular expenditure as defined in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation, including - (a) this Act; or (b) the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in terms of the Act; or (c) any provincial legislation providing for procurement procedures in that provincial government.

1.18 Irregular expenditure (continued)

Irregular expenditure excludes unauthorised expenditure. Irregular expenditure is accounted for as an expense or a assets in the period it occurred and where recovered, it is subsequently accounted for as revenue in the Statement of Financial Performance. Irregular expenditure is recorded in the notes to the Financial Statements when confirmed. The amount recorded is equal to the total value of the irregularity unless it is impracticable to determine in which case reasons therefore is provided in the note. Irregular expenditure is disclosed in the notes to the financial statements and removed from the note when it is either condoned by the relevant authority or transferred to receivables for recovery.

1.19 Related parties

Related party relationships where control exists are disclosed regardless of whether any transactions took place between the parties during the reporting period.

Only transactions with related parties not at arm’s length or not in the ordinary course of business are disclosed.

1.20 Events after the reporting date

Events after reporting date are those events, both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue. Two types of events can be identified:  those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); and  those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date).

All adjusting events are taken into account in the financial statements as the necessary adjustments are made to the financial statements. All non-adjusting events are disclosed in the notes to the financial statements.

1.21 Standards of GRAP approved but not required to be applied by the entity

Standard/Interpretation: Legislatures and Effective date: Years Expected Impact: trading entities beginning on or after

GRAP 18 Segment Reporting 1 April 2019 Unlikely there will be a material impact

GRAP 32 Service Concession 1 April 2019 Unlikely there will be a Arrangements: Grantor material impact

GRAP 107 Mergers 1 April 2019 Unlikely there will be a material impact

GRAP 106 Transfer of Functions 1 April 2019 Unlikely there will be a Between Entities Not material impact Under Common Control

GRAP 105 Transfer of Functions 1 April 2019 Unlikely there will be a Between Entities Under material impact Common Control

GRAP 108 Statutory Receivables 1 April 2019 Unlikely there will be a material impact

342 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 343 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Accounting Policies

1.21 Standards of GRAP approved but not required to be applied by the entity (continued)

GRAP 109 Accounting by 1 April 2019 Unlikely there will be a Principals and Agents material impact

GRAP 110 Living and Non-living 1 April 2020 Unlikely there will be a Resources material impact

2. Change in Estimate

During the period under review the estimated useful lives of 329 Motor Vehicles were increased from 7 years to 8 years for the passenger vehicles (232) and from 11 years to 12 years for commercial vehicles (97).

Depreciation expense for the year Depreciation Depreciation Impact of on original on revised change in estimate estimate estimate Motor Vehicles - Passenger 1 603 802 (802) Motor Vehicles - Commercial 351 175 (175) 1 954 977 (977)

344 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 345 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Notes to the Annual Financial Statements 2020 2019 *Restated R '000 R'000

3. Correction of Prior Period Error

The following prior period errors were identified during the year

Error 1: A vehicle was captured twice in the asset register in the prior year 2018/2019 financial year period in the Property, Plant and Equipment Register

Incorrect processing of Property, plant and equipment journal entries

During 2019/20, audit findings were raised with respect to the accounting for motor vehicles. Work was performed in order to correct the fixed asset register, but some errors were made when recording motor vehicles into motor vehicle register and in presenting the Property, plant and equipment note.

Statement of financial position: Non-current assets Decrease in Accumulated Depreciation - 340 Decrease in Property, Plant and Equipment - (359) - (19)

Statement of financial performance Increase in Cost of Sales - 20

Error 2: Irregular expenditure amount relating to prior year was incorrect captured in the current year.

Incorrect processing of Property, plant and equipment journal entries

During 2019/20, audit findings were raised with respect to irregular expenditure. Irregular expenditure amount relating to prior year was incorrect captured in the current year. The impact of correcting the error is as follows:

Irregular Expenditure Disclosure Note Increase Opening balance - 838 Decrease Irregular Expenditure - current year - (838) - -

Error 3: During 2019/20, audit findings were raised with respect to prior year trade payables that were understated in respect of trade payables which the balance included transactions relating to prior years.

During 2019/20, audit findings were raised with respect to prior year trade payables that were understated in respect of trade payables which the balance included transactions relating to prior years.

Statement of financial position: Non-current assets Increase in Retained Earnings - 11 731 Decrease in Trade payables - (11 731) - -

Error 4: During 2019/20, audit findings were raised with respect to prior year trade debtors that were understated in respect of an official that were involved in accidents and the resolution was that the amount should be recovered from the official.

Incorrect processing of trade payables journal entries

During 2019/20, audit findings were raised with respect to prior year trade debtors that were understated in respect of an official that were involved in accidents and the resolution was that the amount should be recovered from the official.

Statement of financial position: Non-current assets Increase in Trade Debtors - 170 Decrease in Retained Earnings - (170) - -

4. Inventories

Vehicles held for sale 35 361 22 984 35 361 22 984 Inventories (write-downs) (2 014) (1 226) 33 347 21 758

Carrying value of inventories carried at fair value less costs to sell 318 856

Inventories recognised as an expense during the year 201 725 131 726

Any write-down of inventories recognised as an expense 1 671 -

346 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 347 346 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Notes to the Annual Financial Statements Figures in Rand thousand

5. Property, plant and equipment

31 March 31 March 2020 2019 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation depreciation Valuation depreciation and and accumulated accumulated impairment impairment Machinery and Tools 93 (93) - 93 (63) 30

GAUTENG PROVINCIAL GOVERNMENT | Furniture and fixtures 21 884 (8 797) 13 087 20 779 (7 225) 13 554 Motor vehicles 1 565 239 (372 615) 1 192 624 1 705 020 (392 109) 1 312 911 Leasehold improvements 146 380 (23 638) 122 742 140 301 (20 555) 119 746 Leased Property 14 647 (2 071) 12 576 14 647 (1 923) 12 724 Leased machinery and cellphones 14 985 (14 859) 126 14 289 (14 109) 180 Total 1 763 228 (422 073) 1 341 155 1 895 129 (435 984) 1 459 145

Reconciliation of property, plant and equipment - 31 March 2020

Opening Additions Disposal on Transfers Vehicle losses Depreciation Total balance finance lease (to)/from DEPARTMENT OFROADSANDTRANSPORT arrangement inventory Machinery and Tools 30 - - - - (30) - Furniture and fixtures 13 554 1 106 - - - (1 573) 13 087 Motor vehicles 1 312 911 226 525 (2 019) (217 671) (2 562) (124 560) 1 192 624 Leasehold improvements 119 746 6 080 - - - (3 084) 122 742 Leased Property 12 724 - - - - (148) 12 576 Leased machinery and cellphones 180 52 - - - (106) 126 1 459 145 233 763 (2 019) (217 671) (2 562) (129 501) 1 341 155

20 347 348

g-FleeT Management

GAUTENG PROVINCIAL GOVERNMENT | Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Notes to the Annual Financial Statements Figures in Rand thousand

5. Property, plant and equipment (continued)

Reconciliation of property, plant and equipment - 31 March 2019 DEPARTMENT OFROADSANDTRANSPORT Opening Additions Disposal on Transfers Vehicle losses Depreciation Total balance finance lease (to)/from arrangement inventory Machinery and Tools 30 - - - - - 30 Furniture and fixtures 13 440 1 408 - - - (1 294) 13 554 Motor vehicles 1 141 838 439 519 (8 434) (120 840) (2 816) (136 356) 1 312 911 Leasehold improvements 118 047 4 096 - - - (2 397) 119 746 Leased Property 12 872 - - - - (148) 12 724 Leased machinery and cellphones 608 111 - - - (539) 180 1 286 835 445 134 (8 434) (120 840) (2 816) (140 734) 1 459 145

Pledged as security

The entity does not have any assets held as security, surety or pledge.

Assets under construction -WIP

The total accumulated expense recognised for assets under construction relates to buildings.

Construction of assets with a carrying value of R 72 857 111 (2019: R 66 777 426 ) was halted, except for minor deliveries made in 2020, as result of legal claims instituted against the entity. In 2015 an impairment of R 5 270 691 was recognised, subsequently no further impairment has been recognised as there are no indicators of a possible impairment. Construction of assets consists of Furniture and Fixtures amounting to R 3 060 287.41 and Leasehold improvement ( Building) amounting to R 69 796 823.59. The reason why the construction of the building is taking long is that the supplier has taken g-FleeT Management to court over disputed unpaid invoices during October 2012 year and the matter has been at the court since.

21 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT 349 348 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OFROADSANDTRANSPORT

6. Intangible assets

31 March 31 March 2020 2019 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation amortisation Valuation amortisation and and accumulated accumulated impairment impairment Computer software 2 737 (1 230) 1 507 2 737 (982) 1 755 GAUTENG PROVINCIAL GOVERNMENT |

Reconciliation of intangible assets - 31 March 2020

Opening Amortisation Total balance Computer software 1 755 (248) 1 507

Reconciliation of intangible assets - 31 March 2019

Opening Amortisation Total

DEPARTMENT OFROADSANDTRANSPORT balance Computer software 1 973 (218) 1 755

22 349 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Notes to the Annual Financial Statements 2020 2019 *Restated R '000 R'000

7. Finance lease receivables

Gross investment in the lease due - within one year 14 972 25 928 - in second to fifth year inclusive 26 153 33 841 41 125 59 769 less: Unearned finance revenue (14 384) (20 916) Present value of minimum lease payments receivable 26 741 38 853 less: allowance for uncollectible minimum lease payments (5 552) (5 552) 21 189 33 301

Present value of minimum lease payments due - within one year 6 692 12 752 - in second to fifth year inclusive 14 497 20 549 21 189 33 301

The entity entered into finance leasing arrangements for certain of its motor vehicles.

The average lease terms are 4.5 years and the average effective lending rate was 3%.

None of the finance lease receivables have been pledged as security for liabilities or contingent liabilities.

Finance lease receivables impaired

Reconciliation of provision for impairment of class Opening balance 5 552 5 552

350 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 351

8. Receivables from exchange transactions

Trade receivables 192 846 187 042 Other receivables - Revenue from auction of vehicles 2 41 532 Other debtors - Traffic fines and accident claims 4 249 1 211 197 097 229 785

Balance as at 31 March 2020 Gross Balance Impairment Net balance provision Trade Receivables 181 457 (16 615) 164 842 Other debtors - Traffic fines and accident claims 19 708 (15 459) 4 249 Other debtors 28 006 - 28 006 229 171 (32 074) 197 097

Balances as at 31 March 2019: Gross Balance Impairment Net balance provision Trade Receivables 228 647 (41 604) 187 043 Other receivables - Revenue from auction of vehicles 41 532 - 41 532 Other debtors - Traffic fines and accident claims 16 669 (15 459) 1 210 286 848 (57 063) 229 785

g-FleeT’s fundamental objective (and mandate) is focused toward servicing all Government Departments within South Africa. As a result all receivables are due from Provincial and National Departments, including Public Entities and Municipalities respectively.

Trade and other receivables past due but not impaired

The ageing of amounts past due but not impaired is as follows:

31 to 60 days 19 780 41 143 61 to 90 days 8 262 5 149 91 to 120 days 9 549 6 336 Greater than 120 days 69 138 125 585 106 729 178 213

Reconciliation of provision for impairment of trade and other receivables from exchange transactions

Opening balance (41 604) (35 763) Changes to the Statement of Financial Performance 24 989 (5 841) (16 615) (41 604)

9. Prepayments

During the current period the entity made prepayments to Gauteng Department of Roads and Transport relating to registration of vehicles and renewal of vehicle licenses, and to Sanral for e-toll costs.

Prepayments 1 941 1 195

350 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 351 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Notes to the Annual Financial Statements 2020 2019 *Restated R '000 R'000

10. Cash and cash equivalents

Cash and cash equivalents consist of:

Cash on hand 22 4 Bank balances 1 497 658 1 053 088 1 497 680 1 053 092

8.1 Bank Accounts

Primary bank Account - First National Bank

First National Bank Account Bank Statement balance at the end of the year 899 269 644 452

South African Reserve Bank

SARB Account Bank Statement balance at the end of the year 598 390 408 635

352 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 353

11. Finance lease obligation

Non-current liabilities 14 641 14 673 Current liabilities 64 296 14 705 14 969

As at 31 March 2020 Minimum Future Present value lease finance of minimum payments charges lease payments Within One Year 1 266 (1 202) 64 Within Two To Five Years 4 804 (4 794) 10 Later Than Five Years 96 000 (81 369) 14 631 Subtotal 102 070 (87 365) 14 705 Less: Amount Due Within One Year (1 266) 1 202 (64) 100 804 (86 163) 14 641

As at 31 March 2019 Minimum Future Present value lease finance of minimum payments charges lease payments Within One Year 1 513 (1 217) 296 Within Two To Five Years 4 837 (4 796) 41 Later Than Five Years 97 200 (82 568) 14 632 Subtotal 103 550 (88 581) 14 969 Less: Amount Due Within One Year (1 513) 1 217 (296) 102 037 (87 364) 14 673

The lease periods of agreements entered into by g-FleeT in the capacity as a lessee ranges from 2 to 99 years. Interest rates vary per lease agreement. The finance lease obligations, are secured by finance lease assets included in Property, Plant and Equipment.

The average lease term is 34.6 years and the average effective borrowing rate was 8% relating to long term finance lease obligation. The average effective borrowing rate was 10.5% relating to short term finance lease obligation.

The entity's obligations under finance leases are secured by the lessor's charge over the leased assets. Refer to Note 3

12. Long-term leave accrual

The long-term leave accrual represents the amounts of capped leave still due to employees who have not yet resigned or retired.

Opening balance 3 068 2 594 Changes to the Statement of Financial Performance (59) 474 3 009 3 068

13. Payables from exchange transactions

Trade payables 90 910 89 360

352 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 353 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Notes to the Annual Financial Statements 2020 2019 *Restated R '000 R'000

14. Other payables

Salary Payable 34 - Performance bonus accrual 813 928 Debtors with credit balances 2 826 2 380 Leave pay accrual 3 598 2 538 Service bonus and long service award accrual 2 293 2 229 9 564 8 075

Performance bonus accrual Accruals were raised for performance bonusses that are due within the next 12 months.

Leave pay accrual In terms of the Determination on Leave of Absence in the Public Service employees are entitled to annual leave with full pay during each leave cycle of 12 months, commencing on 1 January of each year. The remaining leave days, if any, must be taken no later than 6 months after the expiry of the relevant leave cycle, where after unused leave credits shall be forfeited.

Service bonus and long service award accrual Accruals were raised for service bonus (13th cheque) and long service award which are due within the next 12 months.

Debtors with credit balances The debtors with credit balances at the end of the year have been reclassified to trade payables.

15. Revenue from Leases

Services income 10 844 11 267 Operating Lease 675 036 639 802 Toll Fees 3 175 5 129 Fuel and Oil 158 959 170 809 Traffic and Accident claims 3 328 1 479 Gain on Finance lease disposal - 6 759 851 342 835 245

16. Debt Impairment (Reversal)

Bad debts recovered - 293

17. Interest received

Interest revenue Bank 62 389 55 798 Interest on finance lease receivables 6 545 8 013 68 934 63 811

354 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 355 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Notes to the Annual Financial Statements 2020 2019 *Restated R '000 R'000

18. Realisation of Property Lease Liability

Realisation of Property Lease Liability 1 200 1 200

During 2009, the then Gauteng Department of Public Transport Roads and Works entered into a rental agreement with the Gauteng Department of Infrastructure Development on behalf of g-FleeT. In terms of this lease agreement, the monthly rental is R 100,000 per month (amounting to a R 1,2 million per annum) over the 99 year lease period. The rental agreement does not provide for any inflation, or inflationary adjustments.

The lease agreement further stipulates that the rental fees as paid by g-FleeT, that is in respect of the Entity’s Head Office (situated at No. 16 Boeing Road East, Bedfordview) should be set off against any expenditure incurred by the Entity relating to leasehold improvements.

The Entity has recognised this contract as a finance lease, and therefore accounts for this benefit as revenue from exchange transactions given the improvements that have been effected by g-FleeT.

19. Employee related costs

Basic Salary 63 581 60 526 Performance Bonus 1 190 1 172 Medical aid - company contributions 4 628 4 393 Pension 7 120 7 026 Workmen's Compensation Act contribution 20 19 Leave pay accrual 1 275 355 Other short term costs 314 (590) Overtime payments 1 311 1 353 13th Cheques 4 527 4 372 Acting allowances 891 923 Housing benefits and allowances 5 256 4 909 90 113 84 458

Average number of employees 265 280

Other employee related costs consists of expenditure relating to compensation due to injury on duty and other miscellaneous compensation that may have occurred in the year.

20. General expenses

Advertising 533 526 Auditors remuneration 4 968 5 289 Bank charges 5 9 Consulting and professional fees 275 435 Consumables 2 863 2 180 Debt Impairment expense - 5 841 Entertainment 30 373 Conferences and seminars 497 1 115 License fees - software 316 462 Levies 3 578 371 Motor vehicle expenses 4 7 Fuel and oil 182 588 171 989 Postage and courier 140 113 Printing and stationery 1 029 515 Security 4 031 4 586 Subscriptions and membership fees 12 12 Transport and relocation costs 49 - Training 649 1 513 Travel - local 998 886 Tracking expenses 17 484 18 804 Vehicle theft and losses 5 247 2 816 Rental expenses - operating lease 3 357 3 791 License fees - vehicles 5 835 4 546 Motor vehicle expenses - (RT46 costs) 22 522 18 721 Other expenses 12 2 Inventory write down to net realisable value 1 671 862 258 693 245 764

21. Cash generated from operations

Surplus 291 134 278 802 Adjustments for: Depreciation and amortisation 129 704 140 971 Interest income (6 545) (8 013) Finance costs - Finance lease 918 1 263 Debt impairment reversal - 293 Loss on sale of vehicles 53 235 18 845 Cost of sales 201 725 131 726 Realisation of lease property (1 200) (1 200) Gain on finance lease disposal - (6 759) Inventory write-down to NRV 1 671 862 Vehicle Theft and losses 5 143 3 048 Changes in working capital: Inventories (11 589) 16 311 Receivables from exchange transactions 32 688 17 123 Prepayments (746) 1 895 Payables from exchange transactions 1 550 16 945 Other payables 1 489 (5 484) 699 177 606 628

356 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 357 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Notes to the Annual Financial Statements 2020 2019 *Restated R '000 R'000

22. Financial instruments disclosure

Categories of financial instruments

31 March 2020

Financial assets

At amortised Total cost Trade and other receivables from exchange transactions 197 097 197 097 Traffic fines and accident claims 4 249 4 249 Cash and cash equivalents 1 497 680 1 497 680 1 699 026 1 699 026

Financial liabilities

At amortised Total cost Trade and other payables from exchange transactions 90 910 90 910

31 March 2019

Financial assets

At amortised Total cost Trade and other receivables from exchange transactions 229 785 229 785 Traffic fines and accident claims 1 211 1 211 Cash and cash equivalents 1 053 092 1 053 092 1 284 088 1 284 088

Financial liabilities

At amortised Total cost Trade and other payables from exchange transactions 89 360 89 360

Liquidity risk

g-Fleet's exposure to liquidity risk consists of the risk that it will not have sufficient cash to pay liabilities as they fall due. g-Fleet manages liquidity risk so as to maintain a positive cash balance.

The total exposure to liquidity risk is represented by the trade and other payables and finance lease payable balance in these financial statements.

The entity manages liquidity risk through an ongoing review of future commitments. Through this review, the Entity ensures that it has sufficient cash on demand or access to facilities to meet expected operational and capital expenses. The table below analyses the Entity’s financial liabilities into relevant maturity groupings based on the remaining period at the Statement of Financial Position to the contractual date. The amounts disclosed in the table are the contractual undiscounted cash flows. The maturity profile for finance lease maturity payables is disclosed in the finance lease obligations note.

. Revenue from Leases (continued)

The following is an analysis of the age of accounts receivable that are past due as at the reporting date but not impaired.

Financial assets past due - Accounts Receivable: More than 30 days and not more than 60 days 19 780 41 143 More than 60 days and not more than 90 days 8 262 5 149 More than 90 days 78 688 131 921 106 730 178 213

Maturity of financial liabilities - 31 March 2020 Due within 1 month Payables from exchange transactions 90 910

Credit risk

Credit risk consists of cash and cash equivalents and receivables. g-Fleet Management considers it's credit risk minimised as the entity only hold cash with major banks with high quality credit standing and Trade and other receivables comprise of a Government customer base. Government debt is considered recoverable. All debtors that are neither past due not impaired are thus considered to be recoverable, although recovery may not be within the contractually agreed timeframes.The entity continues to render services to its defaulting customers so as to ensure government service delivery is not impeded by its clients, in extreme cases petrol cards for service departments are suspended until such time outstanding accounts are settled or realistic payment plans are provided.

g-Fleet establishes an impairment that represents its estimate of potential losses in respect of trade receivables. Further credit risk information is provided in the notes for Receivables from exchange transactions and Finance lease receivables.

The full impact of the COVID-19 pandemic is yet to be determined, and a number of markets have been taken by surprise on the related economic impact in such a short period of time, the impairment of trade debtors is likely to increase as a result of budget repriorization from various client departments, Gauteng Department of Health being the hardest hit and owing the largest sum.

Interest rate risk

The Entity is not entitled to charge interest on overdue debtors. The interest arising from finance lease receivables and payables arises from the interest rate implicit in leases, and is not affected by market interest rates. Thus, the entity’s exposure to cash flow interest rate risk arises if it is required to pay interest on overdue trade and other payables. The extent of this risk amounts to market interest rates applied to the trade and other payables balance.

The entity has a policy of paying suppliers within 30 days of the invoice date, and interest rate risk exposure is managed through adherence to this policy.

358 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 359 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Notes to the Annual Financial Statements 2020 2019 *Restated R '000 R'000

23. Commitments

Authorised capital expenditure

Already contracted for but not provided for  Open orders for vehicles 128 780 127 826  Infrastructure 2 940 882 131 720 128 708

Authorised operational expenditure

Already contracted for but not provided for  Open orders for goods and services 4 602 8 682

Total commitments

Total commitments Authorised capital expenditure 131 720 128 708 Authorised operational expenditure 4 602 8 682 136 322 137 390

The committed expenditure will be financed by available retained surpluses, existing cash resources and funds internally generated in line with the provisions of the Medium Term Expenditure Framework (MTEF).

Operating lease commitments

Minimum lease payments due - within one year 672 - - in second to fifth year inclusive 284 - 956 -

g-FleeT Management entered into two years lease agreement which commenced on 01 July 2019 and terminates on 30 June 2021 and provide for an escalation of rental of 9% per annum. Further additional office space was acquired from the 01 October 2019 and terminates on 30 September 2021.The costs of the lease is straight lined over the period of the lease.g- FleeT Management entered into two years office photo-copy machines lease agreement which commenced on the 01 November 2019 and terminates on 30 September 2021.

24. Contingent Liabilities

Litigation:

Three service providers have instituted legal claims against g-FleeT seeking damages. .

Accident claims relate to the claims that have been instituted against g-FleeT in court, for damages caused to third-party vehicles by State drivers using g-FleeT vehicles. The accident claims instituted against g-FleeT in respect of these claims amounts to R 2,148,468 (2019: R 2,440,000 ). These accident claims are considered to be contingent liabilities.

The amounts below represent the Entity's best estimate of the expected cash outflows that will arise from these legal cases and accident claims.

Contingent liabilities consists of: Service provider 2 - Application for: 1 Lien on Property, 2. Interdict to proceed with 4 000 4 000 affected construction on g-FleeT's site and 3. Payments of various claims, by the relevant sub-contractors. Service provider 4 - Claim for undue suspension of services. 1 880 1 880 Service provider 3 - Claim for breach of contract 300 300 Third-party accident claims 2 149 2 440 8 329 8 620

25. Related parties

g-FleeT Management is related to all Gauteng Provincial Government departments and entities by virtue of being under the same control by Gauteng Premier and Gauteng Legislature. All transactions with related parties are within normal supplier and/or client/recipient relationships on terms and conditions no more or less favourable than those which the Entity would have adopted if dealing with that individual entity or person on terms and conditions within the normal operating parameters established by the reporting entity’s legal mandate.

360 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 361 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Notes to the Annual Financial Statements Figures in Rand thousand

26. Member's emoluments

Executive

31 March 2020

Basic Salary 13th Cheque Pension paid Other Benefits Total or receivable Mr Armstrong Ngumla - Acting CFO from 786 65 102 172 1 125 05/09/2017 Mr. Matodzi Mamatsinya - Acting Director (From 494 55 64 195 808 01 October 2018) Mr. Sifiso Mhlongo- Acting Director(From 01 475 47 62 287 871 October 2018) Ms. Sherlon Segal - Acting Director: VIP and 257 - 33 185 475 Pool Services (From 01 May 2019 until 31 October 2019) Ms. Andile Ngcobo - Director Corporate Services 545 48 71 247 911 (Until 16 January 2020) Ms. Salomie Jafta - Director TSS 704 59 92 319 1 174 Mr. N Nduli - Acting COO (From 1 January 2020) 184 - 24 98 306 Ms. Ravanne Mathews - Director Permanent 704 59 92 319 1 174 Fleet Mr. Douglas Scott - Acting Director: VIP and 195 - 25 105 325 Pool Services (From 01 December 2019) Ms Noxolo Maninjwa - CEO 1 028 86 134 466 1 714 5 372 419 699 2 393 8 883

31 March 2019

Basic Salary 13th Cheque Pension paid Other Benefits Total or receivable Mr. Armstrong Ngumla - Acting CFO 05/09/2017 736 61 96 186 1 079 Mr. Matodzi Mamatsinya - Acting Director 314 - 41 146 501 Financial Services (From 01 October 2018) Mr. Sifiso Mhlongo - Acting Director Maintanance 273 - 35 187 495 Services (From 01 October 2018) Ms. Andile Ngcobo - Director Corporate Service 621 52 81 287 1 041 Ms. Salomi Jafta - Director TSS 699 58 91 316 1 164 Ms. Ravanne Mathews - Director Permanent 659 55 86 299 1 099 Fleet Ms. Noxolo Maninjwa - Acting CEO from 978 81 127 449 1 635 01/10/2015 Mr Mongoeng Mathabathe - Director VIP Service 198 21 26 156 401 ( Until 31 July 2019) 4 478 328 583 2 026 7 415

27. Events after the reporting date

The scourge of the Severe Acute Respiratory Syndrome Coronavirus 2 (SARS-COV-2) has brought many challenges which resulted in the President of the Republic declaring the national state of disaster on the 15th of March 2020. On the 23rd of March 2020, the President of the country, Honorable Cyril Ramaphosa announced a countrywide lockdown in response to the COVID-19 pandemic, part of the lockdown was that only certain categories of business can remain open. g-FleeT Management as a self-sustaining Entity pay for all its operational expenses through income generated from leasing of vehicles to government departments and municipalities. The COVID-19 pandemic and related lockdown has had a negative financial impact on the revenue of the Entity which is anticipated to decline by a cumulative value of R120 million in 2020/21 financial year.This implies the impairment of trade debtors is likely to increase as a result of budget reprioritization from various client departments, Gauteng Department of Health being the hardest hit and owing the largest sum. Due to the COVID-19 pandemic, the Entity has also embarked on a process of adjusting the approved Five (5) Year Strategic Plan.

362 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 363 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Notes to the Annual Financial Statements 2020 2019 *Restated R '000 R'000

28. Fruitless and wasteful expenditure

Opening balance - 19 077 Add: Fruitless and Wasteful Expenditure - current year 27 886 - Transferred to receivables (42) (19 077) 27 844 -

R41,600 relates to money spent on office accommodation for East London regional office, but the Entity never realized value for money due to misrepresentation by the service provider. The matter has been referred to SAPS and Departmental Legal Services. Recovery processes are in progress and the service prover was reported at CSD,

R7,847.13 relates to a salary paid to an official that was discharged from service. Recovery processes are in progress, and

R27.836 million relates to suspected duplicate payments to various car manufactures, the full investigation will be undertaken during 2020/21 financial year to determined correct processes to deal with these matter.

29. Irregular expenditure

Opening balance 86 828 82 437 Add: Irregular Expenditure - current year 16 035 4 391 102 863 86 828

Analysis of expenditure awaiting condonation per age classification

Current year 16 035 4 391 Prior years 86 828 82 437 102 863 86 828

Details of irregular expenditure – current year Disciplinary steps taken/criminal proceedings Expired property lease contract Irregular expenditure has been confirmed, 777 investigations are currently underway to determine the liable person in law. Expired tracking contract Irregular expenditure has been confirmed, 14 309 investigations are currently underway to determine the liable person in law. Non-compliance of SCM processes - Security This expenditure was identified during audit. 821 services Investigations will be undertaken to determine the liable person in law. Non-compliance of SCM processes (3 This expenditure was identified during audit. 74 quotations) - Cabinet systems Investigations will be undertaken to determine the liable person in law. Non-compliance of SCM processes - Property This expenditure was identified during audit. 42 lease Investigations will be undertaken to determine the liable person in law. Non-compliance of SCM processes - Materials This expenditure was identified during audit. 12 and supplies Investigations will be undertaken to determine the liable person in law. 16 035

30. Rental deposit

This relates to payments made to the landlord as deposit for office rentals at the regions.

30. Rental deposit (continued)

Rental deposits 6 91

31. Revenue from auction of vehicles

Proceeds received 151 438 71 009 Proceeds receivable - 41 532 151 438 112 541

32. Other Receivables

This balance relates to salary related suspense accounts that could not be cleared during the month of March 2020 or at year end and rental deposits from previous property lease agreements.

Other Receivables 148 102

33. Other income

Revenue from Transport Income 2 012 1 899 Sundry Income 95 81 Tender income - 20 2 107 2 000

34. Finance costs

Finance leases 1 220 1 263

35. Cost of sales

Sale of goods Cost of goods sold 201 725 131 726

36. Repairs and maintanance

The following specific costs included in the amount of repairs and maintanance were incurred by g-FleeT Management.

General maintanance and services 83 051 105 372 Spares and accessories 8 721 12 682 Tyres and tubes 10 660 14 052 102 432 132 106

37. Going Concern

The full impact of the COVID-19 pandemic is yet to be determined, and a number of markets have been taken by surprise on the related economic impact in such a short period of time. Despite the scourge of COVID-19, as at 31st March 2020 Management of the Entity has every reason to believe g-FleeT Management will continue to operate in the foreseeable future.

This assumption is based on the below assessment: -

364 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 365 g-FleeT Management Formerly Government Garage Trading as g-FleeT Management Annual Financial Statements for the year ended 31 March 2020 Notes to the Annual Financial Statements 2020 2019 *Restated R '000 R'000

37. Repairs and maintanance (continued)

1. The allocated budget for 2020/21 financial year for the sum of R933.612 million was approved on the 5th March 2020,

2.The Entity has a strong balance sheet that is backed by cash, .

3.Strict daily cash management processes are embedded in the Entity’s operations to manage and monitor all actual cash inflows and cash outflows in terms of the cash-flow forecast supporting the budget. The cash management processes are complemented with monthly reporting, highlighting the actual cash position, including the associated risks and remedial actions to be instituted,.

4.The Entity has the power to levy fees, tariffs and charges, this will result in an ongoing inflow of revenue to support the ongoing delivery of services. Certain key financial ratios, such as liquidity and solvency are closely monitored and the necessary corrective actions instituted. Taking the aforementioned into account, management has prepared the Annual Financial Statements on the going concern basis.

38. Depreciation and Amortisation

Motor vehicles 124 560 136 376 Property,plant and equipment 4 940 4 378 Intangible assets 248 218 129 748 140 972

39. Segment Reporting

The g-FleeT Management has one economic activity that generates service potential, whose results are regularly reviewed by management to make decisions about resources to be allocated and for which financial information is available. The g-FleeT Management has a single service segment as well as a geographical segment.

364 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 365 NOTES

366 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT 367 NOTES

368 GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT GAUTENG PROVINCIAL GOVERNMENT | DEPARTMENT OF ROADS AND TRANSPORT PB DEPARTMENT OF ROADS AND TRANSPORT ANNUAL REPORT 2019 - 2020 PR390/2020 Marshalltown Tel: 011 355 7332 Fax: 011 355 7305 Life Centre Building Life Centre ISBN: 978-0-621-48982-8 www.gauteng.gov.za 45 Commissioner Street 45 Commissioner Private Bag X83, Marshalltown, 2107 Private Bag X83, Email: [email protected] Gauteng Department of Roads and Transport and of Roads Department Gauteng